Three new stock ETFs for greater global diversification

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Three new stock ETFs for greater global diversification"

Transcription

1 Three new stock ETFs for greater global diversification

2 Canadian stocks account for less than 4% of publicly traded companies global market value. Investors in Canada, however, allocate 59% of their stock portfolios to domestic companies. 1 This attraction to Canadian stocks is understandable. But it leaves portfolios less diversified and more susceptible to risk than they should be. Our all-world ex-canada, developed Europe, and developed Asia Pacific stock ETFs, in conjunction with our existing stock ETFs, can help you diversify your clients portfolios at low cost, while you accommodate their preference for Canadian stocks. Contents 1 The benefits of diversification 2 Canadian investors and home bias 3 Vanguard FTSE All-World ex Canada Index ETF 4 Vanguard FTSE Developed Europe Index ETF 5 Vanguard FTSE Developed Asia Pacific Index ETF 1 Source: Holdings data as of December 31, 2012, from the International Monetary Fund Coordinated Portfolio Investment Survey. Market-capitalization data as of February 28, 2014, from FactSet.

3 The benefits of diversification Diversification is the strategy of investing in different asset classes and among the securities of many issuers in an attempt to reduce investment risk. Diversifying a portfolio can help smooth out returns over time. Outperformance in one investment can help offset underperformance in another. These benefits can apply to an entire portfolio or to an asset class within a portfolio. You can diversify a stock portfolio that holds primarily Canadian stocks by adding international and/or U.S. stocks. Global stocks provide exposure to publicly traded companies in a wide range of markets developed and emerging outside Canada. Figure 1 compares the risk and return of the global equity market with risk and returns of individual countries over more than 40 years. While Canadian stocks have provided a return similar to that of global stocks, they ve done so while taking on greater risk than a global portfolio. Figure 1: Greater risk, similar return 20% 15 Annual return 10 World Canada 5 0 0% 5% 10% 15% 20% Annual volatility 25% 30% 35% 40% Source: Vanguard illustration using Thomson Reuters Datastream return data covering December 31, 1969, through March 31, Returns reflect the MSCI World Index and respective MSCI indexes for countries in the MSCI World Index. 1

4 Canadian investors and home bias Investors in Canada tend to display what is known as home bias ; as a group, they hold a significantly higher proportion of domestic stocks than those stocks are represented in global markets. And while home bias has fallen recently from a 64% overweighting in 2001 to 55% 2 don t be surprised if your clients express discomfort with the notion of stock allocation based on global market capitalization. Investors may choose to overweight Canadian stocks for reasons that include a preference for the familiar and more favourable dividend tax treatment for investments in Canadian as opposed to foreign companies. So how much of an allocation to non-canadian stocks is appropriate? The answer may vary by client. You might find that many would consider increasing their international and U.S. allocation. One risk of not diversifying globally is concentration risk, or having too great an exposure to too few companies. This is evident in the top ten holdings of the MSCI Canada Index. As of February 28, 2014, they accounted for 35.6% of the index, nearly six times the weight of the top ten holdings in the MSCI All Country World Index. The ten largest Canadian companies comprised just 1.15% of the global index. Concentration risk is also evident in the indexes sector allocations. The Canada index is strongly overweight in the energy and financial sectors compared with the global index, while strongly underweight in information technology. Figure 2 shows the weightings of ten sectors in the Canada index compared with their weight in the global index. Figure 2: Sector biases in a Canadian stock portfolio 20% Canadian overweights Canadian underweights Consumer discretionary Consumer staples Energy Financials Health care Industrials Information technology Materials Telecom. services Utilities Source: Vanguard illustration using data from FactSet as of February 28, Canadian stocks represented by the MSCI Canada Index. Global stocks represented by the MSCI All Country World Index. 2 Source: Calculations by The Vanguard Group, Inc., using holdings data as of December 31, 2012, from the International Monetary Fund Coordinated Portfolio Investment Survey and market-capitalization data as of February 28, 2014, from FactSet. 2

5 Vanguard FTSE All-World ex Canada Index ETF VXC Our global stock ETF seeks to track the performance of the FTSE All-World ex Canada Index. VXC provides a low-cost way to invest in stocks of all countries except Canada. VXC simplifies portfolio construction by providing exposure to both emerging and developed markets through a single ETF. Lower costs With a management fee of 0.25% 3 VXC is the lowestcost global equity ETF in Canada. The fee compares with an average asset-weighted management fee of 1.95% for global stock mutual funds. 4 VXC invests in U.S.-domiciled Vanguard ETFs that create a portfolio that comes close to matching the FTSE All-World ex Canada Index. About the benchmark The FTSE All-World ex Canada Index is a marketcapitalization-weighted index of approximately 2,900 large- and mid-capitalization stocks in developed and emerging markets, excluding Canada. 3 The management fee is equal to the fee paid by the Vanguard ETF to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard ETF. Since this Vanguard ETF invests in another Vanguard fund, the management fee also includes any fees paid to Vanguard Investments Canada Inc. or its affiliates by such other Vanguard fund as well as certain expenses of the other Vanguard fund that are paid directly by the other Vanguard fund. At any time during which Vanguard Investments Canada Inc. is the trustee, it will receive no fee in respect of the provision of services as trustee. 4 Source: The Series A average asset-weighted management fee for global equity mutual funds based on the Canadian Investment Funds Standards Committee (CIFSC) category from Investor Economics through December 31, Vanguard and CIFSC are unaffiliated. 3

6 Vanguard FTSE Developed Europe Index ETF VE Our developed Europe ETF seeks to track the performance of the FTSE Developed Europe Index. VE offers low-cost exposure to developed markets in Europe, which account for more than 24% of global stock market capitalization. 5 VE is intended as an enduring portfolio building block. Its region-specific focus provides flexibility, so you can tilt client portfolios toward or away from the region as you and your clients see fit, while maintaining broad diversification. VE invests primarily in the U.S.-domiciled Vanguard FTSE Europe ETF, which holds stocks of companies in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. About the benchmark The FTSE Developed Europe Index is a marketcapitalization-weighted index representing the performance of large- and mid-capitalization stocks in developed economies in Europe. Lower costs With a management fee of 0.23% 6, VE is the lowestcost developed Europe ETF in Canada. The fee compares with an average asset-weighted management fee of 1.94% for developed Europe mutual funds. 7 5 Based on weighting within the FTSE All-World Index as of May 30, The management fee is equal to the fee paid by the Vanguard ETF to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard ETF. Since this Vanguard ETF invests in another Vanguard fund, the management fee also includes any fees paid to Vanguard Investments Canada Inc. or its affiliates by such other Vanguard fund as well as certain expenses of the other Vanguard fund that are paid directly by the other Vanguard fund. At any time during which Vanguard Investments Canada Inc. is the trustee, it will receive no fee in respect of the provision of services as trustee. 7 Source: The Series A average asset-weighted management fee for European equity mutual funds based on the Canadian Investment Funds Standards Committee (CIFSC) category from Investor Economics through December 31, Vanguard and CIFSC are unaffiliated. 4

7 Vanguard FTSE Developed Asia Pacific Index ETF VA Our developed Asia Pacific ETF seeks to track the performance of the FTSE Developed Asia Pacific Index. VA offers low-cost exposure to developed markets in the Asia Pacific region, which account for more than 14% of global stock market capitalization. 8 VA is intended as an enduring portfolio building block. Its region-specific focus provides flexibility, so you can tilt client portfolios toward or away from the region as you and your clients see fit, while maintaining broad diversification. About the benchmarks The FTSE Developed Asia Pacific Index is a marketcapitalization-weighted index representing the performance of large- and mid-capitalization stocks in developed economies in the Asia Pacific. Lower costs With a management fee of 0.23% 9, VA is among the lowest-cost options in the Asia Pacific stock fund marketplace. The fee compares with an average asset-weighted management fee of 1.85% for developed Asia Pacific funds. 10 VA invests primarily in the U.S.-domiciled Vanguard FTSE Pacific ETF, which holds stocks of companies in Australia, Hong Kong, Japan, New Zealand, Singapore and South Korea. 8 Based on weighting within the FTSE All-World Index as of May 30, The management fee is equal to the fee paid by the Vanguard ETF to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard ETF. Since this Vanguard ETF invests in another Vanguard fund, the management fee also includes any fees paid to Vanguard Investments Canada Inc. or its affiliates by such other Vanguard fund as well as certain expenses of the other Vanguard fund that are paid directly by the other Vanguard fund. At any time during which Vanguard Investments Canada Inc. is the trustee, it will receive no fee in respect of the provision of services as trustee. 10 Source: The Series A average asset-weighted management fee for Asia Pacific equity mutual funds based on the Canadian Investment Funds Standards Committee (CIFSC) category from Investor Economics through December 31, Vanguard and CIFSC are unaffiliated. 5

8 Vanguard Investments Canada Inc. 155 Wellington Street West Suite 3720 Toronto, ON M5V 3H1 Connect with Vanguard vanguardcanada.ca/advisorsalpha Investors will usually pay brokerage fees to their dealer if they purchase or sell units of ETFs on Toronto Stock Exchange (TSX). If the units are purchased or sold on TSX, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current NAV when selling them. ETFs are priced continuously and bought and sold throughout the day in the secondary market, which entails paying additional costs such as bid/ask spreads. There are ongoing fees and expenses associated with owning units of an ETF. An ETF must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Vanguard ETFs in these documents at ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Vanguard ETFs are managed by Vanguard Investments Canada Inc. a wholly-owned indirect subsidiary of The Vanguard Group, Inc. Date of first publication: July This communication is solely for informational purposes, and is not a recommendation, offer or solicitation to buy or sell any ETFs or to adopt any investment or portfolio strategy. The information is not investment and/or tax advice, nor is it tailored to the needs or circumstances of any individual investor. All investing is subject to risk, including the possible loss of the money you invest. Investments in stocks issued by companies outside Canada are subject to risks including country/regional risk, which is the chance that political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issued by companies in foreign countries or regions; and currency risk, which is the chance that the value of a foreign investment, measured in Canadian dollars, will decrease because of unfavourable changes in currency exchange rates. Foreign investing risks are especially high in emerging markets. In a diversified portfolio, gains from some investments may help offset losses from others. However, diversification does not ensure a profit or protect against a loss. All rights in the FTSE All-World ex Canada Index, the FTSE Developed Europe Index and the FTSE Developed Asia Pacific Index (the Indexes ) vest in FTSE International Limited ( FTSE ). FTSE is a trademark of London Stock Exchange Group companies and is used by FTSE under license. Vanguard FTSE All-World ex Canada Index ETF, Vanguard FTSE Developed Europe Index ETF and Vanguard FTSE Developed Asia Pacific Index ETF (the Products ) have been developed solely by Vanguard. The Indexes are calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Products and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indexes or (b) investment in or operation of the Products. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Products or the suitability of the Indexes for the purpose to which they are being put by Vanguard Vanguard Investments Canada Inc. All rights reserved. GGDEQ

Diversify portfolios with U.S. and international bonds

Diversify portfolios with U.S. and international bonds Diversify portfolios with U.S. and international bonds Investing broadly across asset classes such as stocks, bonds and cash can help reduce volatility and risk within a portfolio. Canadian investors have

More information

Vanguard Emerging Markets Stock Index Fund

Vanguard Emerging Markets Stock Index Fund Vanguard Emerging Markets Stock Index Fund Supplement to the Prospectus and Summary Prospectus Dated February 26, 2015 New Target Index Effective as of the start of business on November 2, 2015, Vanguard

More information

Are your clients missing over 90% of the global market?

Are your clients missing over 90% of the global market? Are your clients missing over 90% of the global market? November 2014 Paul Bosse, CFA Principal, Vanguard Investment Strategy Group About Vanguard The Vanguard Group, Inc. Founded: 1975 Corporate headquarters:

More information

SIX VANGUARD TSX-LISTED INTERNATIONAL EQUITY ETFS TO BROADEN DIVERSIFICATION WITH ALL-CAP EXPOSURE

SIX VANGUARD TSX-LISTED INTERNATIONAL EQUITY ETFS TO BROADEN DIVERSIFICATION WITH ALL-CAP EXPOSURE For more information, contact the Vanguard PR Hotline at 610-669-5002 PRESS RELEASE SIX VANGUARD TSX-LISTED INTERNATIONAL EQUITY ETFS TO BROADEN DIVERSIFICATION WITH ALL-CAP EXPOSURE Six ETFs to receive

More information

Registered country information Vanguard Investment Series plc and Vanguard Funds plc

Registered country information Vanguard Investment Series plc and Vanguard Funds plc Registered country information Vanguard Investment Series plc and Vanguard Funds plc The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

More information

INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD

INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD YOU ARE WHAT YOU DO INTERNATIONAL SECURITIES TRADING III CONTENTS CONTENTS Welcome Welcome 1 2 Trade international securities with

More information

Understanding ETF liquidity and trading

Understanding ETF liquidity and trading Understanding ETF liquidity and trading ETF liquidity and trading can seem complex. For example, you may have heard that ETFs with lower average daily trading volumes (ADVs) aren t as liquid as others

More information

International Securities Trading now you can invest across the world

International Securities Trading now you can invest across the world International Securities Trading now you can invest across the world INTERNATIONAL SECURITIES TRADING iii CONTENTS Welcome 2 Trade international securities with CommSec and Pershing 2 International trading

More information

International fixed income: The investment case FOR EXISTING VANGUARD ADVICE CLIENT USE ONLY. NOT FOR DISTRIBUTION

International fixed income: The investment case FOR EXISTING VANGUARD ADVICE CLIENT USE ONLY. NOT FOR DISTRIBUTION International fixed income: The investment case Why international fixed income? International bonds currently make up the largest segment of the securities market Ever-increasing globalization and access

More information

Benefit from the Vanguard difference

Benefit from the Vanguard difference Benefit from the Vanguard difference Contents 2 About Vanguard 3 An enduring investment philosophy 4 A different way to invest 6 An indexing leader 7 A trusted partner for advisors in Canada 8 Contact

More information

OCTOBER 2010. Russell-Parametric Cross-Sectional Volatility (CrossVol ) Indexes Construction and Methodology

OCTOBER 2010. Russell-Parametric Cross-Sectional Volatility (CrossVol ) Indexes Construction and Methodology OCTOBER 2010 Russell-Parametric Cross-Sectional Volatility (CrossVol ) Indexes Construction and Methodology SEPTEMBER 2010 Russell-Parametric Cross-Sectional Volatility (CrossVol) Indexes Construction

More information

Pax MSCI International ESG Index Fund:

Pax MSCI International ESG Index Fund: Pax MSCI International ESG Index Fund: ESG Factors Drive Stronger Returns with Lower Risk Over Its First 4 Years In January 2011, Pax World was an early mover in launching a strategy designed to provide

More information

Human Energy. Yours. TM. New Investment Choices in Your ESIP. Your Wealth. New Investment Choices in Your ESIP 1

Human Energy. Yours. TM. New Investment Choices in Your ESIP. Your Wealth. New Investment Choices in Your ESIP 1 Human Energy. Yours. TM New Investment Choices in Your ESIP Your Wealth. New Investment Choices in Your ESIP 1 New Investment Choices in Your ESIP How you invest the money you save in the ESIP is one of

More information

Foreign Taxes Paid and Foreign Source Income INTECH Global Income Managed Volatility Fund

Foreign Taxes Paid and Foreign Source Income INTECH Global Income Managed Volatility Fund Income INTECH Global Income Managed Volatility Fund Australia 0.0066 0.0375 Austria 0.0045 0.0014 Belgium 0.0461 0.0138 Bermuda 0.0000 0.0059 Canada 0.0919 0.0275 Cayman Islands 0.0000 0.0044 China 0.0000

More information

IOOF QuantPlus. International Equities Portfolio NZD. Quarterly update

IOOF QuantPlus. International Equities Portfolio NZD. Quarterly update IOOF QuantPlus NZD Quarterly update For the period ended 31 March 2016 Contents Overview 2 Portfolio at glance 3 Performance 4 Asset allocation 6 Overview At IOOF, we have been helping Australians secure

More information

Put ETFs to work for your clients

Put ETFs to work for your clients Put ETFs to work for your clients Contents 2 What are ETFs? 4 Potential benefits of ETFs 5 Comparing ETFs and mutual funds 6 How ETFs work 11 ETFs and indexing Exchange-traded funds (ETFs) are attracting

More information

Rules-Based Investing

Rules-Based Investing Rules-Based Investing Disciplined Approaches to Providing Income and Capital Appreciation Potential Focused Dividend Strategy International Dividend Strategic Value Portfolio (A: FDSAX) Strategy Fund (A:

More information

REFINE YOUR INVESTMENT STRATEGIES

REFINE YOUR INVESTMENT STRATEGIES seic.com REFINE YOUR INVESTMENT STRATEGIES with Managed Volatility Funds SEI s Suite of Managed Volatility Funds Proven to Deliver SEI introduced what we believe was the first managed volatility fund of

More information

Mirae Asset Global Investments (Hong Kong) Limited

Mirae Asset Global Investments (Hong Kong) Limited PRODUCT KEY FACTS Horizons Exchange Traded Funds Series- 17 November 2015 This is an exchange traded fund. This statement provides you with key information about this product. This statement is a part

More information

RB-15-167 November 24, 2015 Page 2 of 6

RB-15-167 November 24, 2015 Page 2 of 6 Regulatory Bulletin RB-15-167 To: Subject: ETP HOLDERS DEUTSCHE X-TRACKERS RUSSELL 1000 ENHANCED BETA ETF DEUTSCHE X-TRACKERS FTSE DEVELOPED EX US ENHANCED BETA ETF Compliance and supervisory personnel

More information

* Principal U.S. Listing Exchange: NYSE Arca, Inc. (except GULF, DXPS, DXJS, DXGE, DXKW, EMCG, CXSE and DGRE are listed on NASDAQ).

* Principal U.S. Listing Exchange: NYSE Arca, Inc. (except GULF, DXPS, DXJS, DXGE, DXKW, EMCG, CXSE and DGRE are listed on NASDAQ). PROSPECTUS International Equity ETFs August 1, 2015 as revised November 12, 2015 WisdomTree Trust WisdomTree International Equity ETFs* Developed World ex-u.s. International Equity Fund (DWM) (formerly,

More information

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR. RE: ishares CURRENCY HEDGED MSCI ETFS TO BEGIN TRADING ON CHX

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR. RE: ishares CURRENCY HEDGED MSCI ETFS TO BEGIN TRADING ON CHX July 2, 2015 ETF-015-073 CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR RE: ishares CURRENCY HEDGED MSCI ETFS TO BEGIN TRADING ON CHX Pursuant to Information Circular MR

More information

Staying alive: Bond strategies for a normalising world

Staying alive: Bond strategies for a normalising world Staying alive: Bond strategies for a normalising world Dr Peter Westaway Chief Economist, Europe Vanguard Asset Management November 2013 This document is directed at investment professionals and should

More information

Invesco Alpha Strategies EAFE Select 20 Portfolio. An International Unit Trust Investor Guide

Invesco Alpha Strategies EAFE Select 20 Portfolio. An International Unit Trust Investor Guide Invesco Alpha Strategies EAFE Select 20 Portfolio An International Unit Trust Investor Guide Before investing, investors should carefully read the prospectus and consider the investment objectives, risks,

More information

HSBC World Selection Funds April 30, 2016. Monthly Factsheets Class A and C Shares. Investment products: ARE NOT A BANK ARE NOT DEPOSIT OR

HSBC World Selection Funds April 30, 2016. Monthly Factsheets Class A and C Shares. Investment products: ARE NOT A BANK ARE NOT DEPOSIT OR HSBC World Selection Funds April 30, 2016 Monthly Factsheets Class A and C Shares Aggressive Strategy Fund Balanced Strategy Fund Moderate Strategy Fund Conservative Strategy Fund Income Strategy Fund

More information

CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES

CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES THE APERIO DIFFERENCE. Authors Michael Branch, CFA Ran Leshem CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES U.S. investors can capture international equity exposure

More information

Vanguard Investments Hong Kong Limited December 2015

Vanguard Investments Hong Kong Limited December 2015 PRODUCT KEY FACTS Vanguard FTSE Developed Europe Index ETF Vanguard Investments Hong Kong Limited December 2015 This is an exchange traded fund. This statement provides you with key information about this

More information

The active/passive decision in global bond funds

The active/passive decision in global bond funds The active/passive decision in global bond funds Vanguard research November 213 Executive summary. This paper extends the evaluation of active versus passive management to global bond funds. Previous Vanguard

More information

PROTECTING YOUR PORTFOLIO WITH BONDS

PROTECTING YOUR PORTFOLIO WITH BONDS Your Global Investment Authority PROTECTING YOUR PORTFOLIO WITH BONDS Bond strategies for an evolving market Market uncertainty has left many investors wondering how to protect their portfolios during

More information

FUTURE SCHOLAR 529 COLLEGE SAVINGS PLAN

FUTURE SCHOLAR 529 COLLEGE SAVINGS PLAN FUTURE SCHOLAR 529 COLLEGE SAVINGS PLAN PROGRAM DESCRIPTION FINANCIAL ADVISOR PROGRAM, NOVEMBER 2014 The Future Scholar 529 Plan Individuals with questions concerning the Future Scholar 529 Plan (the Program

More information

VANGUARD LAUNCHES SERIES OF 10 TARGET RETIREMENT FUNDS

VANGUARD LAUNCHES SERIES OF 10 TARGET RETIREMENT FUNDS PRESS RELEASE For more information, contact the Vanguard PR Hotline at 610-669-5002 or vanguard_media_relations@vanguard.com VANGUARD LAUNCHES SERIES OF 10 TARGET RETIREMENT FUNDS TORONTO (March 31, 2016)

More information

Global Investing: The Importance of Currency Returns and Currency Hedging

Global Investing: The Importance of Currency Returns and Currency Hedging Global Investing: The Importance of Currency Returns and Currency Hedging There is a continuing trend for investors to reduce their home bias in equity allocation and increase the allocation to international

More information

Investment risk Balancing investment risk and potential reward

Investment risk Balancing investment risk and potential reward Investment risk Balancing investment risk and potential reward This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard Asset

More information

Exchange Traded Funds. An Introductory Guide. For professional clients only

Exchange Traded Funds. An Introductory Guide. For professional clients only Exchange Traded Funds An Introductory Guide For professional clients only Exchange-Traded Funds (ETFs) started to be used in Europe in the early 2000s but over the past few years they have grown their

More information

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR June 12, 2014 ETF-014-053 CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR RE: ishares TRUST ETFS TO BEGIN TRADING ON CHX Pursuant to Information Circular MR 08-16, the Chicago

More information

How Hedging Can Substantially Reduce Foreign Stock Currency Risk

How Hedging Can Substantially Reduce Foreign Stock Currency Risk Possible losses from changes in currency exchange rates are a risk of investing unhedged in foreign stocks. While a stock may perform well on the London Stock Exchange, if the British pound declines against

More information

Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX

Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX Summary Prospectus October 30, 2015 Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX Before you invest, you may

More information

This study concludes that Asian investors would benefit from greater global diversification.

This study concludes that Asian investors would benefit from greater global diversification. The buck role of stops global here: Vanguard equities for money Asian market investors funds Vanguard research November 2014 Scott Pappas, Ryan Rich This study concludes that Asian investors would benefit

More information

Access the world. with Schwab Global Investing Services

Access the world. with Schwab Global Investing Services Access the world with Schwab Global Investing Services 78% of developed country equity market growth between 2000 and 2012 came from outside the U.S. 1 60% of developed country stock market capitalization

More information

FTSE All-World ex Fossil Fuels Index Series

FTSE All-World ex Fossil Fuels Index Series FTSE FACTSHEET FTSE All-World ex Fossil Fuels Index Series Data as at: 31 August 2015 bmktitle1 Market participants are increasingly looking to manage carbon exposure in their investments, and reduce write-off

More information

HANG SENG FTSE / XINHUA CHINA 25 INDEX ETF

HANG SENG FTSE / XINHUA CHINA 25 INDEX ETF HANG SENG FTSE / XINHUA CHINA 25 INDEX ETF (SEHK STOCK CODE:2838) www.hangseng.com/etf IMPORTANT RISK WARNINGS / FUND INFORMATION FOR HONG KONG INVESTORS Hang Seng FTSE/Xinhua China 25 Index ETF (the HS

More information

ishares MSCI ACWI ex US Consumer Discretionary Sector Index Fund ishares MSCI ACWI ex US Energy Sector Index Fund

ishares MSCI ACWI ex US Consumer Discretionary Sector Index Fund ishares MSCI ACWI ex US Energy Sector Index Fund Date: July 19, 2010 BZX Information Circular 10-075 Re: ishares MSCI ACWI ex US Sector Index Funds ETFs (Nine Funds) Pursuant to Rule 14.1(c)(2) of the Rules of BATS Exchange, Inc. ( BATS or the Exchange

More information

Equity income and passive investing

Equity income and passive investing Equity income and passive investing Todd Schlanger, CFA Investment Strategy Group Vanguard Asset Management, Limited This document is directed at professional investors and should not be distributed to,

More information

As the World Shrinks, Equity Opportunities Grow

As the World Shrinks, Equity Opportunities Grow Third Quarter 2014 WHITEPAPER As the World Shrinks, Equity Opportunities Grow Reasons Investors Should Consider International Equities: A Growing Opportunity Set Attractive Valuations Diversification Benefits

More information

Standard Deviation 18.16 % 14.67 %

Standard Deviation 18.16 % 14.67 % BLACKROCK.COM/GLSE GLOBAL LONG/SHORT EQUITY FUND With the world full of uncertainty, investors have shied away from equity markets, sacrificing long-term growth potential. Today, investors need an investment

More information

9 Questions Every ETF Investor Should Ask Before Investing

9 Questions Every ETF Investor Should Ask Before Investing 9 Questions Every ETF Investor Should Ask Before Investing 1. What is an ETF? 2. What kinds of ETFs are available? 3. How do ETFs differ from other investment products like mutual funds, closed-end funds,

More information

db x-trackers MSCI World High Dividend Yield Index UCITS ETF (DR) Supplement to the Prospectus

db x-trackers MSCI World High Dividend Yield Index UCITS ETF (DR) Supplement to the Prospectus db x-trackers MSCI World High Dividend Yield Index UCITS ETF (DR) Supplement to the Prospectus This Supplement contains information in relation to db x-trackers MSCI World High Dividend Yield Index UCITS

More information

MANDATORY PROVIDENT FUND SCHEMES AUTHORITY

MANDATORY PROVIDENT FUND SCHEMES AUTHORITY Guidelines III.4 MANDATORY PROVIDENT FUND SCHEMES AUTHORITY III.4 Guidelines on Approved Exchanges INTRODUCTION Section 2 of the Mandatory Provident Fund Schemes (General) Regulation ( the Regulation )

More information

Vanguard FTSE Developed Markets ETF Prospectus

Vanguard FTSE Developed Markets ETF Prospectus Vanguard FTSE Developed Markets ETF Prospectus April 8, 2016 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard Developed Markets Index Fund ETF Shares

More information

BMO Global Asset Management (Asia) Limited 11 February 2016

BMO Global Asset Management (Asia) Limited 11 February 2016 Product Key Facts BMO MSCI EUROPE QUALITY HEDGED TO USD ETF BMO Global Asset Management (Asia) Limited 11 February 2016 Quick facts This is an exchange traded fund. This statement provides you with key

More information

International Equity Investment Options for 401(k) Plans

International Equity Investment Options for 401(k) Plans International Equity Investment Options for 401(k) Plans Considerations for Plan Sponsors Authored by: Adam D. Brown, T. Rowe Price Defined Contribution Investment Specialist Executive Summary T. Rowe

More information

HXS: A Tax Efficient Way to Hold U.S. Stocks

HXS: A Tax Efficient Way to Hold U.S. Stocks HXS: A Tax Efficient Way to Hold U.S. Stocks Name: Horizons S&P 500 Index ETF (HXS) Index: S&P 500 Index (Total Return) Management Fee: 0.15% ETF Investment Structure: Total Return Swap Swap Fee: Yes (approximately

More information

FTSE Global Bond Index Series

FTSE Global Bond Index Series FTSE Global Bond Index Series FTSE GLOBAL BOND INDEX SERIES The FTSE Global Bond Index Series is a series of fixed income indices covering the principal government bond markets and selected corporate markets.

More information

Head Considerations for global equities: A European investor s perspective

Head Considerations for global equities: A European investor s perspective Head Considerations for global equities: A European investor s perspective Vanguard Research September December 214 Peter Westaway, PhD, Matthew Tufano, Todd Schlanger, CFA, Christopher Philips, CFA When

More information

Dividend Yield (%) Component Weight (%) Mean Median Largest Smallest Largest Smallest 5.56 4.97 18.41 0.00 2.32 0.59

Dividend Yield (%) Component Weight (%) Mean Median Largest Smallest Largest Smallest 5.56 4.97 18.41 0.00 2.32 0.59 Stated Objective To represent the stock performance of 100 leading dividend-paying companies worldwide. Key Features Is derived from the developed-market portion of the Dow Jones Global Index. Stocks are

More information

A Canadian investor s perspective

A Canadian investor s perspective The Global buck equities: stops Balancing here: Vanguard home bias and money diversification market funds A Canadian investor s perspective Vanguard research July 2014 David C. Pakula, David J. Walker,

More information

Why Look Beyond the U.S. for Dividends?

Why Look Beyond the U.S. for Dividends? Why Look Beyond the U.S. for s? Market Commentary January 2016 WHEN INVESTORS ARE LOOKING FOR YIELD, many may consider dividend-paying equities. s offer a consistent form of return and may buffer risk

More information

Traditionally, venturing outside the United States has involved two investments:

Traditionally, venturing outside the United States has involved two investments: WisdomTree ETFs INTERNATIONAL HEDGED EQUITY FUND HDWM Approximately 50% of the world s equity opportunity set is outside of the United States, 1 and the majority of that is in developed international stocks,

More information

Fact Sheet. Dow Jones Sustainability TM World Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments & Firearms and Adult Entertainment

Fact Sheet. Dow Jones Sustainability TM World Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments & Firearms and Adult Entertainment Dow Jones Sustainability TM World Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments & Firearms and Adult Stated Objective The Dow Jones Sustainability TM World Enlarged Index ex Alcohol, Tobacco,

More information

Morningstar is shareholders in

Morningstar is shareholders in Media Contact: Andy Seunghye Jung, +82 2 3771 0730 or andy.jung@morningstar.comm FOR IMMEDIATE RELEASE Morningstar A Grade Announces Findings from Fourth Global Fund Investor Experience Report; Korea Scores

More information

Looking Down Under: An Approach to Global Equity Indexing in Australia

Looking Down Under: An Approach to Global Equity Indexing in Australia January 2015 CONTRIBUTOR Michael Orzano, CFA Director, Global Equity Indices michael.orzano@spdji.com Looking Down Under: An Approach to Global Equity Indexing in Australia The benefits of incorporating

More information

ishares Product Overview Q2 2015

ishares Product Overview Q2 2015 ishares Product Overview Q2 2015 About BlackRock BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2015,

More information

VANGUARD TO CHANGE TARGET BENCHMARKS FOR 22 INDEX FUNDS

VANGUARD TO CHANGE TARGET BENCHMARKS FOR 22 INDEX FUNDS PRESS RELEASE For a full list of the impacted funds and more information, contact Vanguard Public Relations at 610-669- 5002. VANGUARD TO CHANGE TARGET BENCHMARKS FOR 22 INDEX FUNDS VALLEY FORGE, PA (October

More information

Wealth Management Education Series. Explore the Field of Investment Funds

Wealth Management Education Series. Explore the Field of Investment Funds Wealth Management Education Series Explore the Field of Investment Funds Wealth Management Education Series Explore the Field of Investment Funds Managing your wealth well is like tending a beautiful formal

More information

Explore the Field of Mutual Funds

Explore the Field of Mutual Funds Wealth Management Education Series How can we help you further? Do you have a question on what you have just read? Would you like to have a further discussion on this subject? Contact your Relationship

More information

Evaluating Managers on an After-Tax Basis

Evaluating Managers on an After-Tax Basis Evaluating Managers on an After-Tax Basis Brian La Bore Senior Manager Research Analyst Head of Traditional Research Greycourt & Co., Inc. March 25 th, 2009 Is Your Alpha Big Enough to Cover Its Taxes?

More information

Currencies & Currency Hedging

Currencies & Currency Hedging Ugo Egbunike, Moderator Director of Business Development ETF.com Currencies & Currency Hedging Juliana Bambaci, Panelist Index Applied Research MSCI Jonathan Citrin, Panelist Founder & CEO Citrin Group

More information

AMG Funds AMG Renaissance International Equity Fund (RIELX)

AMG Funds AMG Renaissance International Equity Fund (RIELX) AMG Funds AMG Renaissance International Equity Fund (RIELX) September 2015 An AMG Affiliate AMG Funds Overview w w w AMG Funds provides access to premier boutique asset managers through a unique partnership

More information

Axioma Risk Monitor Global Developed Markets 29 June 2016

Axioma Risk Monitor Global Developed Markets 29 June 2016 Axioma Risk Monitor Global Developed Markets 29 June 2016 1. Global volatility hotspots 2. Global correlation hotspots www.axioma.com Greater than 1% rise over last week Greater than 1% fall over last

More information

ESG PRACTICES FOR PASSIVELY MANAGED EQUITY STRATEGIES SEPTEMBER 2014

ESG PRACTICES FOR PASSIVELY MANAGED EQUITY STRATEGIES SEPTEMBER 2014 ESG PRACTICES FOR PASSIVELY MANAGED EQUITY STRATEGIES SEPTEMBER 2014 EXECUTIVE SUMMARY Mercer s ESG (environmental, social and governance) ratings have generally been well-integrated into the manager research

More information

Global equities: Balancing home bias and diversification

Global equities: Balancing home bias and diversification Global equities: Balancing home bias and diversification Vanguard research February 214 Equities not domiciled in the United States accounted for 51% of the global equity market as of December 31, 213,

More information

Module 5 International ETFs

Module 5 International ETFs Module 5 International ETFs Course #: Title Topic 1: What are international ETFs?... 3 Exposure to international markets... 3 Why would I want exposure to overseas markets?... 3 Index-tracking... 3 Buying

More information

MULTI-ASSET STRATEGIES REDEFINING THE UNIVERSE APRIL 2014

MULTI-ASSET STRATEGIES REDEFINING THE UNIVERSE APRIL 2014 MULTI-ASSET STRATEGIES REDEFINING THE UNIVERSE APRIL 2014 INTRODUCTION Loved by many, reviled by others, multi-asset strategies are undeniably a key feature of the investment landscape. In the US they

More information

Use this brochure to gain expertise about ETFs that you can communicate to your clients.

Use this brochure to gain expertise about ETFs that you can communicate to your clients. How ETFs work Your clients may have questions about exchange-traded funds (ETFs), such as how they differ from mutual funds, how they re traded and even how they re created. Use this brochure to gain expertise

More information

SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS. OECD Secretariat

SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS. OECD Secretariat SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS OECD Secretariat Methodological issues The information collected concerns all forms of quantitative portfolio restrictions applied to pension funds in OECD

More information

Franklin Templeton Investment Funds

Franklin Templeton Investment Funds Franklin Templeton Investment Funds Online ID Name CRNCY Description L4058R498 FRANK EUROPEAN GRWTH A ACC EUR The Fund's objective is long term capital appreciation. The Fund invests at least two thirds

More information

Put your cash to work with

Put your cash to work with be inspired to build with ishares Core funds. Put your cash to work with ishares Core funds. WHY DO WE HOLD CASH? The top 3 reasons Canadians hold cash deposits, savings accounts or money markets 46% cash

More information

Research & Analytics. Low and Minimum Volatility Indices

Research & Analytics. Low and Minimum Volatility Indices Research & Analytics Low and Minimum Volatility Indices Contents 1. Introduction 2. Alternative Approaches 3. Risk Weighted Indices 4. Low Volatility Indices 5. FTSE s Approach to Minimum Variance 6. Methodology

More information

Exchange Traded Funds A Brief Introduction

Exchange Traded Funds A Brief Introduction Exchange Traded Funds A Brief Introduction spdrs.com What You Need to Know about ETFs ETF Basics Potential Benefits of ETFs ETFs versus Mutual Funds The Role of ETFs in Your Portfolio Our Next Steps Frequently

More information

Principles for investment success. We believe you will give yourself the best chance of investment success if you focus on what you can control

Principles for investment success. We believe you will give yourself the best chance of investment success if you focus on what you can control Principles for investment success We believe you will give yourself the best chance of investment success if you focus on what you can control Important information This guide has been produced for educational

More information

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong Important Risk Disclosure for PAIF: ABF Pan Asia Bond Index Fund ( PAIF ) is an exchange traded bond fund which seeks to provide investment returns that corresponds closely to the total return of the Markit

More information

Wealth Management Education Series. Explore the Field of Mutual Funds

Wealth Management Education Series. Explore the Field of Mutual Funds Wealth Management Education Series Explore the Field of Mutual Funds Wealth Management Education Series Explore the Field of Mutual Funds Managing your wealth well is like tending a beautiful formal garden

More information

Foreign Direct Investment in the United States. Organization for International Investment

Foreign Direct Investment in the United States. Organization for International Investment Foreign Direct Investment in the United States Organization for International Investment March 18, 2009 Key Findings FOREIGN DIRECT INVESTMENT IN THE UNITED STATES Foreign Direct Investment in the United

More information

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR

CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR January 23, 2014 ETF-014-011 CHICAGO STOCK EXCHANGE, INC. MARKET REGULATION DEPARTMENT INFORMATION CIRCULAR RE: MARKET VECTORS MSCI ETF S TO BEGIN TRADING ON CHX Pursuant to Information Circular MR 08-16,

More information

Vanguard Developed Markets Index Fund Vanguard Total International Stock Index Fund Prospectus

Vanguard Developed Markets Index Fund Vanguard Total International Stock Index Fund Prospectus Vanguard Developed Markets Index Fund Vanguard Total International Stock Index Fund Prospectus August 12, 2013 Institutional Shares & Institutional Plus Shares Vanguard Developed Markets Index Fund Institutional

More information

The Lipper Leader Rating System

The Lipper Leader Rating System The Lipper Leader Rating System International Methodology Total An to the Lipper Leader Rating System Overview The Lipper Leader Rating System is a toolkit that helps guide investors and their advisors

More information

Exchange Traded Funds Tactical Asset Allocation Tools

Exchange Traded Funds Tactical Asset Allocation Tools Exchange Traded Funds Tactical Asset Allocation Tools Eleanor De Freitas, Catherine Barker 1 Barclays Global Investors Exchange traded funds (ETFs), combine the advantages of both index funds and stocks.

More information

2015 Semi-Annual Management Report of Fund Performance

2015 Semi-Annual Management Report of Fund Performance (the Fund ) For the six-month period ended March 31, 2015 (the period ) Manager: BMO Investments Inc. (the Manager or BMOII ) Portfolio manager: BMO Asset Management Inc., Toronto, Ontario (the portfolio

More information

FTSE Global Small Cap Index

FTSE Global Small Cap Index FTSE FACTSHEET FTSE Global Small Cap Index bmktitle1 The FTSE Global Small Cap Index is derived from FTSE's flagship Global Equity Series universe, which comprises around 7,000 securities worldwide, giving

More information

Considerations for investing in non-u.s. equities

Considerations for investing in non-u.s. equities Considerations for investing in non-u.s. equities Vanguard research March 212 Executive summary. Non-U.S. equities currently account for close to 55% of global market capitalization, thus representing

More information

Success with fixed index annuities

Success with fixed index annuities Allianz Life Insurance Company of North America M3596 For agent use only not for use with the public. Page 1 of 12 The Allianz vision At Allianz, we believe that every American should have the opportunity

More information

Exchange Traded Funds. Plain Talk Library

Exchange Traded Funds. Plain Talk Library Plain Talk Library Contents What is indexing? 2 ETFs 2 How do ETFs work? 3 ETFs - Fees and Costs 4 How can you invest in ETFs? 6 Participants in the ETF market 9 What are the benefits of ETFs? 10 Risk

More information

THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS. Mamiko Yokoi-Arai

THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS. Mamiko Yokoi-Arai THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS Mamiko Yokoi-Arai Current macro economic environment is of Low interest rate Low inflation and nominal wage growth Slow growth Demographic

More information

a. Average annual expense ratios* b. Percentage of all Vanguard funds outperforming the average returns of their peer groups**

a. Average annual expense ratios* b. Percentage of all Vanguard funds outperforming the average returns of their peer groups** IMPORTANT: Investment involves risk, including the loss of principal. Investors are advised to consider their own investment objectives and circumstances in determining the suitability of an investment

More information

Contents. 1 Asset allocation 2 Sub-asset allocation 3 Active/passive combinations 4 Asset location

Contents. 1 Asset allocation 2 Sub-asset allocation 3 Active/passive combinations 4 Asset location ETF Strategies Contents Why ETFs? Strategic uses for ETFs 1 Asset allocation 2 Sub-asset allocation 3 Active/passive combinations 4 Asset location Tactical uses for ETFs 1 Portfolio completion 2 Cash

More information

ETFs for private investors

ETFs for private investors ETFs for private investors Simple products. Sophisticated strategies. ETFs Exchange Traded Funds (ETFs) are instruments which track an index. Indices can be country or region specific and based on emerging

More information

ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS)

ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS) ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS) DIVERSIFY WITH HIGH YIELDING U.S. EQUITIES 1 WHAT IS ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF? AT A GLANCE Benchmark S&P 500 Low Volatility

More information

Learn about exchange-traded funds. Investor education

Learn about exchange-traded funds. Investor education Learn about exchange-traded funds Investor education Become a more knowledgeable exchange-traded funds investor In this education guide, you ll get answers to common questions about exchange-traded funds,

More information

ANZ ETFS S&P/ASX 100 ETF. (ASX Code: ZOZI)

ANZ ETFS S&P/ASX 100 ETF. (ASX Code: ZOZI) ANZ ETFS S&P/ASX 100 ETF (ASX Code: ZOZI) INVESTMENT BUILDING BLOCKS FOR A CHANGING WORLD Introducing a suite of innovative exchange traded funds (ETFs) designed for Australian investors by ANZ ETFS,

More information

International Equity Investing: Long-Term Expectations and Short-Term Departures*

International Equity Investing: Long-Term Expectations and Short-Term Departures* International Equity Investing: Long-Term Expectations and Short-Term Departures* Vanguard Investment Counseling & Research Executive summary The main benefit of investing internationally is greater portfolio

More information