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Australia’s first international small companies fund launched

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By Eliot Hastie
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2 minute read

Australia’s first international small companies ETF has begun trading on the ASX to give investors access to over 3,000 small companies.

The Vanguard MSCI International Small Companies Index offers Australians access to 3910 small company holdings across 19 developed markets internationally. 

The Index allows ETF investors to tap into the long-term growth potential that can often be found in the sector.

Vanguard’s head of ETF capital markets Damien Sherman said the company was thrilled to launch the index to offer a diversified building block for investors.

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“Despite significant market volatility in October, we continue to see increasing trading volumes across our low-cost range of offerings, as ETFs continue to provide attractive investment options for Australians.

Mr Sherman said ETFs offered investors an opportunity to reduce their exposure in the market and to re-orientate their portfolio during turbulent times.

“As often happens with ETFs during volatile times, investors increased their usage of broad-based ETFs as both an opportunity to ‘buy the dip’ or to reorient their portfolio toward index products that reduce their exposure to single stock risk”.

The new ETF joins the five others listed by Vanguard this year bringing the total number of ETFs on offer to 28.