Vanguard to expand in Mexico and names Juan Hernandez to head business.
Vanguard has cross-listed 65 US-domiciled ETFs on the Bolsa and 26 ETFs for SIEFOREs.
Vanguard is the world's second-largest ETF provider* and largest mutual fund company*.
Vanguard Investments Mexico announced today that Juan Manuel Hernandez has been named the head of Vanguard's business in Mexico as the company expands its efforts to meet local investors' needs for low-cost and broadly diversified investment products.
Hernandez joins Vanguard from Blackrock Inc. Mexico, where he served as head of institutional sales. He also held the head of sales position for iShares Mexico.
"Vanguard has been serving investors in Mexico since 2009 from our headquarters in the US, and we believe regulatory, fee, legal, and capital market structures are moving in the right direction to enable Vanguard to expand in Mexico," said Kathy Bock, head of Vanguard Americas. "We are delighted to have someone of Juan's caliber to lead Vanguard's work to further increase access to our products to investors in Mexico."
"Many companies talk about their client focus but Vanguard actually lives and breathes it as a result of its mission to take a stand for all investors, treat them fairly, and give them the best chance at investment success. It has a global reputation for offering products solely designed to serve investors' needs and goals. Vanguard's desire to deepen its business is a huge win for Mexican investors and I'm honored to have this opportunity to be part of the effort," Mr. Hernandez said.
Vanguard, the world's largest mutual fund company and one of the world's largest investment management companies, has gained a global reputation for doing what's right for investors. "We do that by advocating for low-cost investment products and transparency in what investors are paying for their investments," Ms. Bock said.
"Our views of investing are straightforward, easy to understand and designed for the long term. With more than 40 years of experience in successfully managing money for individuals and institutions, we have helped millions of investors meet their investment objectives around the world. Our goal is to do the same for more investors in Mexico."
Vanguard, the world's second-largest ETF provider, offers 65 Vanguard US-domiciled ETFs cross-listed on the International Quotation System (SIC) of the Bolsa Mexicana de Valores and 26 ETFs approved as eligible investments for Mexican Sociedades de Inversion Especializadas para el Retiro (SIEFOREs).
Vanguard has worked with The Compass Group as its distribution partner since 2009 in Mexico, Chile, Colombia, and Peru. "Compass is a critical partner in our success in Latin America. The Compass team has been invaluable in helping Vanguard enter Mexico and in serving investors there and elsewhere in Latin America," Ms. Bock said. "Its local expertise in representing Vanguard's mission has contributed greatly to our success in serving the pension systems and in participating in industry forums that have served to strengthen the capital markets and pension systems for investors."
"We look forward to continuing our work with Vanguard to ensure that investors throughout Latin America have access to high-quality low-cost investment products," said José Ignacio Armendáriz, Compass partner and country head of Mexico.
The ETF market in Mexico is projected to grow 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 $3.9 trillion*** in nearly 5,900 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
As of June 30, 2017, Vanguard managed $774 billion in global ETF assets. It is the second-largest ETF provider, offering 145 ETFs around the world.
Vanguard introduced its first ETF in the United States in 2001. Vanguard offers a thoughtfully designed suite of ETFs that meet durable, long-term investment needs.
*Source: Morningstar. Mutual fund data as of May 31, 2017, and ETF data as of June 30, 2017. **Source: Vanguard/McKinsey, January 2016 ***Source: Morningstar, Inc., as of March 31, 2017
About Vanguard Vanguard is one of the world's largest investment management companies. As of June 2017, Vanguard managed $4.4 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 369 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com.
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.
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.