Back in January Portfolio Adviser revealed Vanguard was aiming to launch its first ETFs in Europe but had been experiencing delays with regulators.
The suite encompasses a FTSE 100, S&P 500, FTSE Emerging Markets, FTSE All-World and UK Government Bond product and the funds will have TERs between 0.09% and 0.45%, compared to an industry average TER in the UK of 0.53% the firm said.
Vanguard said an application had been made to the FSA and was still pending and so the ETFs are not yet available for sale in the UK. But it expects the initial five ETFs to be admitted to trading on the London Stock Exchange ‘shortly’.
Initial attempts for a launch in Europe go back as early as October, a source close to the group has informed Portfolio Adviser.
The provider has over 60 ETPs listed in the US market and is ranked third in terms of ETP AUM, behind only iShares and State Street Global Advisers.
The US parent group was launched in 1975 and offered its first ETF in 2001, but its first UK office was not opened until 2009.
Tom Rampulla, managing director of Vanguard Asset Management, said: "We have chosen to launch the physical-backed ETF replication model because it is straightforward and easy to understand. We believe that through our experience and indexing expertise, Vanguard offers a unique combination of low-cost, tight-tracking ETFs from a provider investors can trust.
The Vanguard S&P 500 ETF has the lowest TER at 0.09%, which is essential because the competition is already so tightly priced in that area.
Meanwhile, the Vanguard FTSE Emerging Markets ETF is priced at 0.45% and is the most expensive in the suite.
