Vanguard VEFI ETF (ASX:VEFI)

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (AUD Hedged)

About the VEFI ETF

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (AUD Hedged) VEFI gives exposure to Vanguard Ethically Conscious Global Aggregate Bond Index (Hedged). The Fund invests in a range of high-quality, income-generating securities issued by governments, government-owned entities, government-guaranteed entities, investment-grade corporate issues and securitised assets from around the world. The VEFI ETF pays quarterly distributions and has a total assets of $60.2 million. The underlying fund has $1.15 billion of assets.

The Fund does not invest in securities of issuers that engage in activities in, and/or derive revenue from, fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment.

The ETF seeks to track the return of the Bloomberg MSCI Global Aggregate SRI Exclusions Float Adjusted Index Hedged into Australian dollars before taking into account fees, expenses and tax.

VEFI ETF Performance Review

1
Year

0.12

3
Year

5
Year

Since
Inception

4.29

Running
Yield

1.63

Yield To
Maturity

0.85

Data Current To: 31/08/2021

Our review of VEFI ETF

Global, ethical portfolio with good mix of government and corporate bonds

Investment grade with a weighted average credit quality of AA- as at 31 August 2021

What we like about the VEFI ETF

Hedged to AUD

Things to be aware of about the VEFI ETF

Yield to maturity less than 1%

Minimum initial investment $500,000 (although no minimum on platforms)

VEFI ETF Investment Strategy

The fund invests in high-quality, income-generating securities issued by governments, government-owned entities, government-guaranteed entities, investment-grade corporate issues and securitised assets from around the world. The fund excludes securities associated with fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power and adult entertainment.

VEFI ETF Share Price

What does the VEFI ETF Invest In?

VEFI is a Multi Sector ETF.

In constructing the Index, using MSCI research, Bloomberg (the Index provider) excludes the securities of issuers that engage in activities in, and/or derive revenue (above a threshold specified by the Index provider) from, fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment.

This index methodology also excludes the securities that have a controversy score above a threshold specified by MSCI. Where MSCI has insufficient or no data available to adequately assess a particular security relative to the ethically conscious criteria of the Index, these securities may not be excluded.

VEFI ETF Credit Quality

The average credit quality of the VEFI ETF is AA-.

A detailed breakdown of the credit quality is expressed below.

VEFI Frequently Asked Questions

What index does the VEFI ETF aim to replicate?

The VEFI ETF aims to replicate the Bloomberg MSCI Global Aggregate SRI Exclusion Float Adjusted Hedged into AUD Index.

How often does VEFI ETF pay distributions?

The distribution frequency of VEFI is Quarterly.

When did the VEFI ETF start?

The inception date of the VEFI ETF was 11/09/2018.

What are the net assets of the VEFI ETF?

VEFI has net assets of $49.51m (AUD) as of 31/08/2021.

What are the number of holdings in the VEFI ETF?

Total number of holdings in VEFI is 5064 as of 31/08/2021.

What are the management fees for the VEFI ETF?

The annual management fees for the VEFI ETF are 0.26% p.a. Learn more about ETF fees in this article.

How can I invest in the VEFI ETF?

VEFI is an Exchange Traded Fund, and units may be bought or sold on the ASX like shares. Learn how to buy and sell ETFs in this article.

Does the VEFI ETF have a minimum investment amount?

No, there is no minimum to invest in the Vanguard VEFI ETF. Exchange Traded Funds in general do not have a minimum investment amount required by the issuer. However, if you choose to invest through a broker, they may choose to set their own minimum investment amount.

Are there any performance fees associated with the VEFI ETF?

No, VEFI has no performance fee. This is one of the advantages of Exchange Traded Funds, as they are traded like shares, you’ll generally only pay a commission to buy or sell units and an ongoing management fee.

About The Issuer Of The VEFI ETF: Vanguard

Vanguard Investments was founded in 1975 and manages AUD$8.7 trillion in assets globally, and is entirely client-owned.

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Luke is the Chief Technical Officer of Fixed Income News Australia and responsible for website design and development, including fund finder functionality. He has worked for ASX-listed industry leaders and a variety of marketing agencies across Australia. Luke is Head of Marketing at communications, content and creative agency RGC Media & Mktng, MBA News Australia and Online MBA Australia. He holds a Diploma of Creative Arts and is Google Accredited.