Exchange traded funds are the most common of a group of investment vehicles known as exchange traded products, or ETPs. Just like regular stocks, they can be traded on a stock exchange. But they also share some of the features of a fund. ETFs offer investors four key features: low cost, liquidity, transparency and diversification. These four core qualities are at the heart of all Vanguard ETFs, and they offer many other features besides.
Let's take a closer look. First of all, our ETFs aren't just low cost investments. Our unique structure and client focused philosophy mean we take the lead in really driving down costs over the long term, not just as a pricing ploy. As for liquidity, with an integrated portfolio and trading team plus trading desks in three continents, we cover a 24 hour trading day.
Moving on to transparency. Our ETFs are all built in the same clear, uncomplicated way using physical replication to track well-known indices and finally, diversification. We only select the broadest index exposures that offer diversification across a wide range of stocks and bonds. This can help to minimise volatility and risk. That means our select range of ETFs provides comprehensive coverage of all the exposures the majority of investors will ever need.
We're innovative in other areas too. Take technology, for example, we pioneered algorithmic trading wheels to fine tune our investment approach. Plus, Vanguard offers value to investors in other ways, not just in ETFs, but in all that we do. Our scale, our experience, and, of course, our four unchanging investment principles. Vanguard has been managing index funds since 1976 and providing ETFs in Europe for over ten years.
Vanguard ETFs. Build your clients futures on Strong Foundations
