Vanguard has launched four new US exchange-traded funds (ETF) to give investors more choice when buying into the world’s largest market.
The Vanguard Russell 2000 U.S. Small-Cap UCITS ETF and Vanguard Russell U.S. Mid-Cap UCITS ETF will both cost investors 0.2% per year and offer access to companies further down the market capitalisation spectrum.
Meanwhile, Vanguard Russell 1000 U.S. Value UCITS ETF and Vanguard Russell 1000 U.S. Growth UCITS ETF will have an ongoing charges figure (OCF) of 0.16% and will invest using screens to allocate within specific investment styles.
Claire Aley, head of product for Europe at Vanguard, said: “The US equity market offers investors a wide range of opportunities. With these new ETFs, we are expanding our range of low-cost building blocks to help investors tailor their US equity exposure more precisely.”
The growth fund will be more applicable for those who want to “lean into areas of the market with greater exposure to technology and AI-related businesses”.
Conversely, the value fund “can help investors diversify away from the parts of the market that have dominated recent performance”, she noted, which may prove appealing in the current climate as some fear the valuations of the largest tech stocks have become stretched.
“The addition of mid- and small-cap exposures also gives investors further tools to diversify,” she concluded.