At Vanguard, we like to do things differently. Rather than focusing on returns we believe that what is really important to investors is achieving their life goals.
At Vanguard, we like to do things differently. Rather than focusing on returns we believe that what is really important to investors is achieving their life goals.
The way to do this, in our view, is to hold to four basic investment principles: Set clear goals; develop a well-balanced, diversified portfolio; minimise costs; maintain a disciplined, long-term perspective.
As a fund provider, our role at Vanguard is to offer a broad range of choices, including both active and passive funds, single-strategy funds and multi-asset solutions, such as our popular LifeStrategy Funds. Across all of these options, we emphasise low costs. The phrase ‘the Vanguard effect’ has even come to be used to describe the fall in fees that often follows Vanguard entering a particular market.
One of the best ways to build a low-cost portfolio is by using index funds. We think this is a good starting point for most investors. But while we’re known for our index funds, approximately a third of our global assets are in active strategies. We have now launched four actively managed funds in the UK market, each with an ongoing charges figure (OCF) of 22 basis points.
- The Vanguard Global Value Factor UCITS ETF invests in low-valued stocks, which are stocks that look inexpensive compared with the company’s fundamentals.
- The Vanguard Global Momentum Factor UCITS ETF focuses on stocks with strong recent share price performance, typically over the previous twelve months.
- The Vanguard Global Liquidity Factor UCITS ETF invests in stocks that are less frequently traded and could be a source of outperformance over the long-term.
- The Vanguard Global Minimum Volatility UCITS ETF targets a combination of stocks with lower volatility compared with the broader market allows investors.
Our approach to active investing is underpinned by the same investment principles we employ across all our investment strategies. We believe these principles give investors the best chance of success.
Important information
This document is directed at professional investors only and should not be distributed to, or relied upon by retail investors.
This document is designed for use by, and is directed only at persons resident in the UK.
The material contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so.
The information on this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making any investment decisions.
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
The fund(s) may invest in financial derivative instruments that could increase or reduce exposure to underlying assets and result in greater fluctuations of the fund's Net Asset Value. Some derivatives give rise to increased potential for loss where the fund's counterparty defaults in meeting its payment obligations.
Vanguard Funds plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EU countries. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor for Vanguard Funds plc.
The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard LifeStrategy Funds ICVC.
For further information on the funds’ investment policy, please refer to the Key Investor Information Document (“KIID”). The KIID and the Prospectus for these funds is available in local languages from Vanguard via our website https://global.vanguard.com/
Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.
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