Most investors know the exchange-traded fund (ETF) and investment provider Vanguard from some of its more high-profile ETFs. Vanguard's flagship fund is the Vanguard Australian Shares Index ETF (ASX: VAS), which boasts the distinction of being the ASX's most popular ETF.
But Vanguard has dozens of different ETFs covering all sorts of sectors of global financial markets. So today, let's discuss three of Vanguard's lesser-known funds, and why I think they could be worth a look this September.
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3 overlooked Vanguard ASX ETFs I think are worth a buy right now
Vanguard MSCI International Small Companies Index ETF (ASX: VISM)
There are many ASX ETFs on our share market that allow ASX investors to indirectly buy international shares. But there are hardly any that focus on small international companies. Well, this fund is an exception.
It gives ASX investors access to a massive portfolio of more than 4,000 smaller international shares. These hail from all over the world, with countries as diverse as Japan, Sweden, France, Singapore, and Israel all contributing holdings to VISM's portfolio.
In saying that, more than 60% of this ETF's underlying holdings come from the United States.
You probably won't have heard of too many of this ETF's top holdings, but they include Mattel, DraftKings, and Manhattan Associates.
This ETF has returned an average of 13.29% per annum over the past three years. I think it's certainly worth a look if you want to add some geographic diversity to your ASX portfolio this September.
Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)
Another Vanguard ETF I think is worth a look at this month is the Vanguard Emerging Markets ETF. Like VISM, this fund is a useful one to incorporate into an ASX share portfolio if you're looking to boost your geographic diversification.
But you won't find many American or European companies here. This ETF focuses on emerging markets around the world. These include the likes of countries such as China, India, Taiwan, Brazil, South Africa, Egypt, and Pakistan.
It's obviously pretty difficult to invest in these kinds of markets from Australia, so this ETF handily fills that gap. Some of its top holdings include Taiwan Semiconductor Manufacturing Co, Alibaba, Vale SA, and Petroleo Brasileiro SA.
This ETF has returned an average of 5.85% per annum since its inception in 2013. It charges a management fee of 0.48% per annum.
Vanguard Global Infrastructure Index ETF (ASX: VBLD)
Infrastructure is another area that ASX investors might find difficult to invest in when going beyond our shores. The ASX sports a few infrastructure investments, such as Transurban Group (ASX: TCL). But they are becoming few and far between, especially since the old Sydney Airport went private last year.
Again, this ETF can help plug this hole. Its holdings are also dominated by North American companies, with the United States and Canada accounting for more than 80% of its holdings. But other countries like Japan, Spain, Hong Kong, and South Korea are also represented.
The Vanguard Global Infrastructure ETF comprises electricity generators, railroads, pipeline companies, water and gas distributors, and telecommunications providers. Many investors love these kinds of companies for their predictable cash flows and perceived safety from recessions and inflation.
As of 31 July, this ETF has returned an average of 7.73% per annum over the past three years. It asks a management fee of 0.48% per annum.
