A new Vanguard ETF commenced trading on the ASX this morning, just as the company announces a new investment head for the Australian quantitative equities business.
The Vanguard Global Multi-factor ETF (ASX: VGMF) aims to outperform the international equities market using a multi-factor approach.
It will take its picks from the FTSE Developed All-Cap Index which includes large, small and mid-caps in developed markers and Russell 3000 Index which includes 3000 largest listed companies in the US and small and mid-cap companies.
The portfolio manager will start by screening out the most volatile stocks. Then a rules-based approach combining three factors will be used. Those factors are momentum (stocks with strong recent performance), quality (stocks with good balance sheets and probability) and value (stocks with low prices relative to fundamental measures of value).
The ETF is benchmarked to the FTSE Developed All-Cap Index (with net dividends reinvested) in Aussie dollars before fees, tax and expenses.
Vanguard is recommending a minimum investment time frame of seven years. The fee is 0.33% p.a.
It has also launched an unlisted fund for the same strategy for wholesale investors, priced at 0.35% p.a.
New QEG head
The new strategy will be managed by Vanguard Australia's Quantitative Equity Group (QEG).
Vanguard has just appointed Alla Kolganova as the Australian head of QEG.
She moved into the role as incumbent Mike Roach transitions into a new role as head of US equity operational risk at Vanguard's US headquarters.
Kolganova joined Vanguard in February 2000 and has worked in senior roles, including as head of Australian equities and property securities, and APAC head of equities.
In 2015 she moved to Vanguard's UK team to lead the equity index portfolio management and trading team in Europe.
She returned to Australia in 2018 to join Vanguard's Investment Strategy Group as a principal and senior Investment Strategist.
Vanguard head of Investment management group Asia Pacific Daniel Reyes said: "Vanguard's Quantitative Equity Group is efficiently staffed with a deep bench of credentialed professionals who are supported by the larger Vanguard organisation to leverage the best practices, low-cost execution and expertise of traders in multiple markets around the globe."
"QEG's collaborative approach over the past 30 years sets them apart from many competitors. They seek to add value through low costs, diversification and predictability relative to an index, as opposed to relying on star managers or key individuals."