Vanguard has launched the Vanguard DAX ETF that provides access to “30 of the largest and most liquid companies in Germany”.
The Ucits fund has total ongoing charges of 10 basis points. It will invest in well-known manufacturers, car makers, and industrial companies in Europe’s largest economy.
Vanguard has been locked in a low-cost ETF price war with rivals .
The ETF is listed on the London Stock Exchange (LSE) and Deutsche Börse.
The DAX index – a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange – was launched in December 1987.
“Over the past 30 years, during which Germany has experienced re-unification, the establishment of the European Union, the introduction of the euro, three chancellors, the dotcom boom, and the global financial crises of 2008, the DAX has generated an annualised return of 9%,” Vanguard said in a statement.
“A hypothetical €100 investment made in 1987, would potentially be worth €1291 today, although performance may have been diminished once fees were applied.”
Thomas Merz, Head of Distribution, Europe ex-UK, said: “The Vanguard DAX Ucits ETF is designed to help investors putting together high-quality, balanced, diversified portfolios; whether that’s domestic investors looking for exposure to their home market, or investors’ across Europe recognising the opportunities provided by Europe’s largest economy.”
In June, Vanguard opened its first office in Germany, based in Frankfurt, following the listing of Vanguard’s full European Ucits ETF range on Deutsche Börse in October 2017.
The group has made a number of senior ETF hires, including; the appointment of Simone Rosti as head of Italy, the hiring of Markus Weis as deputy head of Germany and Austria and ETF Specialists Liz Wright, Christophe Collet, and Rahul Thrakar and Gregoire Blanc.
Vanguard now offers 25 Ucits ETFs for European investors and has more than €150bn ($175bn) in assets under management across its European mutual fund and ETF range.