Hot on the heels on Vanguard’s first ETF launched in Hong Kong in May 2013, three additional ETFs were launched in June 2014. For those of us who are watching with anticipation for Vanguard to reach Singapore shores, this should be good news. Till then, you would now be able to purchase Vanguard’s four ETFs that are listed on Hong Kong Stock Exchange.

If I’m not wrong, the withholding tax rates for dividends in 0% for Hong Kong, which is a major, major advantage. For United States, in comparison, the withholding tax rates for dividends is 30%.

Edit :
From US >> HK 30% is already applied, so there is no tax savings.
See this post.

  1. Vanguard FTSE Asia ex Japan Index ETF (2805)
  2. Vanguard FTSE Japan Index ETF (3126)
  3. Vanguard FTSE Developed Europe Index ETF (3101)
  4. Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF (3085)

Fancy “owning the world” in a single click of your mouse? What we really need is a World Index ETF much like Vanguard Total World Stock ETF (VT).

We don’t pay anyone in the middle and that’s one of the reasons we keep costs low.
– Shelly Painter of Vanguard Investments HK

The current situation in Singapore is rather unfortunate for Vanguard. The firm in Singapore holds a type of capital markets services licence that does not allow it to market itself to retail investors.

Three Vanguard funds are available through Lion Global Investors, labelled as the Infinity range, which comprise stock index funds tracking the SP 500 index, MSCI Europe and MSCI World Free indexes. The Infinity funds charge a sales charge of 2 per cent and annual management fee of 0.475 per cent. In contrast, the equivalent Vanguard index funds in the US have an expense ratio of 0.17 per cent.

For your reading pleasure :

  • http://www.asianinvestor.net/News/388717,vanguard-voices-frustration-over-commission-model.aspx
  • http://www.etfstrategy.co.uk/vanguard-expands-etf-offering-in-hong-kong-43326/
  • http://www.btinvest.com.sg/wealth/wealth-planning/vanguard-push-spread-low-cost-word-20130618/

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