VALLEY FORGE, Pa., Nov. 15, 2016 /PRNewswire/ -- To meet the growing demand for broadly diversified exchange-traded funds (ETFs) in Mexico, Vanguard today has cross-listed three new ETFs on the Mexican Stock Exchange (Bolsa), bringing the total number of Vanguard ETFs available on the Bolsa to 65.
The new ETFs are:
- Vanguard Mortgage Backed Securities Fund (VMBS) invests primarily in U.S. agency mortgage-backed pass-through securities.
- Vanguard International High Dividend Yield Index Fund (VYMI) provides exposure to international stocks that are forecasted to have above-average dividend yields.
- Vanguard International Dividend Appreciation Index Fund (VIGI) provides exposure across developed and emerging non-U.S. equity securities around the world that have a history of increasing dividends.
"Vanguard is pleased to be able to cross-list additional products on the Bolsa to help meet Mexican investors' needs for low-cost and broadly diversified ETFs," said Kathy Bock, head of Vanguard Americas.
The ETF market in Latin America is growing at 18% annually,* mirroring the same trend worldwide over the past several years as more investors are attracted to low-cost indexing and indexed ETFs.
ETFs are becoming the investment of choice for investors worldwide because of the growing popularity of indexing and increasing accessibility on many investment platforms. Global ETF assets have grown to more than $3.3 trillion* in nearly 6,700 ETF products globally*, providing investors with a broad array of choice to gain exposure to the world's stock and bond markets.
The ETF structure blends the investment characteristics of conventional mutual funds with the transactional characteristics of individual securities. As opposed to mutual funds that are bought or redeemed at prices determined at the close the trading day, ETFs are continually priced and traded throughout the day.
Like index mutual funds, ETFs provide broad diversification, enabling investors to spread investment risk over thousands of securities to mitigate single stock risk. In general, ETFs, like most index funds, feature lower expense ratios than actively managed mutual funds.
Vanguard as an ETF leader
Vanguard is the world's largest mutual fund company and one of the world's largest investment management companies. As of September 30, 2016, Vanguard managed more than $3.8 trillion in global assets, including over $600 billion in global ETF assets. The firm, headquartered in Valley Forge, Pennsylvania, U.S., offers more than 350 funds to its more than 20 million investors worldwide.
Vanguard introduced its first ETF in the United States in 2001 and is now the world's second-largest ETF provider. Vanguard offers a thoughtfully designed suite of ETFs that meet durable, long-term investment needs.
*Source: Morningstar, Inc., as of March 31,2016
*Source: Morningstar, Inc., as of September 31, 2016
*Source: Bloomberg, as of December 31,2015
For more information about Vanguard funds, visit vanguard.com or call 800-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
All investing is subject to risk, including the possible loss of money you invest.
Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets
This document contains information and comments of a general nature and is for informational purposes only. It does not in any way contain information with purposes of promoting, advertising or marketing securities for Mexican investors. Vanguard is not acting as a broker of the ETF shares and is not authorized to carry out brokerage activities or collection of deposits. The content, any statement made by Vanguard or any of its affiliates, employees or attorneys-in-fact shall not in any way be construed as a brokerage activity, investment advice recommendation, or as an offering or securities or any other financial product. Any relevant information may be consulted or obtained in the relevant prospectus or informational supplements found at the webpage of the Mexican Stock Exchange (Bolsa Mexicana de Valores, S.A. de C.V.). The purchase or sale of ETF shares generates brokerage commissions. However, given that the annual costs of managing ETFs may be substantially lower than those for an investment fund, it is expected that such savings compensate the commission costs. The information contained herein is not intended to be investment advice.
Vanguard Marketing Corporation, Distributor. U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; 8,417,623.