Strong Demand for Vanguard's New Low-Cost ETFs

Vanguard's recent launch of ETFs in the UK is unlikely to trigger a pricing war but the firm is focused on keeping costs low for investors

Alanna Petroff 8 June, 2012 | 12:26AM

Vanguard’s five new low-cost exchange-traded funds (ETFs), which were just launched last month in the UK, are experiencing healthy investor demand and interest from both individual and institutional investors, says Nick Blake, head of Vanguard’s investment products and distribution.

“One thing investors look very closely at for ETFs is the ...  bid-ask spread. But with ours we’ve been very pleased with the way that our spreads have tightened, which is a sign of the demand for the product and the competitiveness of the product,” says Blake.

The investment management firm Vanguard launched the new ETFs on the London Stock Exchange on 23 May 2012, after making a name for itself in the US by offering a wide variety of extremely low-cost fund and ETF options. The asset management giant first began offering a selection of funds in the UK in 2009, but had never offered ETFs.

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About Author

Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.

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