Vanguard FTSE Asia ex Japan Index ETF

[hkpatv]

Recently noticed that Vanguard are launching new this ETF in Hong Kong.
https://www.vanguard.com.hk/document...-etf-fs-en.pdf
It has lower TER (0.38%) than equivalent funds, pretty good diversification and significantly higher volume than other equivalent funds (343K average, although hard to judge as it has only been trading a few days).
Although I am generally implementing a buy and hold strategy, I am considering consolidating some of my current Asia Pacific ETF holdings (3035.HK, 3087.HK, 2823.HK) with a view to taking advantage of the lower TER.
Anybody else noticed this fund? Got any thoughts or concerns about it?
Seems Vanguard also planning to launch further ETFs in HK market in future as well

[cheepo]

I seem to recall that vanguard has the lowest commission?

Do you get companies' dividends with this etf?

[walkup]

Do you get companies' dividends with this etf?

Dividend return on straight ETFs should be the default.

[cheepo]

Dividend return on straight ETFs should be the default.

I think usually this is not the case, and the fact that 2800 pays dividend is what makes it particularly attractive. Where can I find if this 2805 pays dividends?

[Claire ex-ax]

The name 'Vanguard' always pricks up my ears. Big fan of John Bogle.

[cheepo]

I read here that they do actually pay a dividend, quarterly. It's also written in the prospectus, but then it says "At the Manager's absolute discretion"??? What does that mean? He can not pay a dividend if he pleases?? WTF?

Is this fund better than others, e.g. the ones listed here?

[walkup]

I read here that they do actually pay a dividend, quarterly. It's also written in the prospectus, but then it says "At the Manager's absolute discretion"??? What does that mean? He can not pay a dividend if he pleases?? WTF?

Is this fund better than others, e.g. the ones listed here?

Small print can be so interesting.... If an ETF is invested 100% in the actual stock of the appropriate index then it should pay out. If, on the other hand, the ETF is synthetic then the dividends will not be forthcoming. If 'at the manager's discretion' then either there is some actual or partial synthetic exposure or the dividends are a potential piggy bank to be raided for management fees in the event of poor fund performance IMHO.

[hkpatv]

The TER that I quoted is basically the commission ie management fee. At .38% seems better than most equivalent funds. Yes, as mentioned quarterly dividend. I generally prefer ETF's that reinvest dividends - however I think in HK where no need to worry about capital gains tax it doesn't matter too much. I am pulling the trigger on my portfolio, have sold some other APAC ETFs and will go into this Vanguard one.

[Raccon]

Small print can be so interesting.... If an ETF is invested 100% in the actual stock of the appropriate index then it should pay out. If, on the other hand, the ETF is synthetic then the dividends will not be forthcoming. If 'at the manager's discretion' then either there is some actual or partial synthetic exposure or the dividends are a potential piggy bank to be raided for management fees in the event of poor fund performance IMHO.

I assume what they mean is that it's at the manager's discretion when to pay or to reinvest them, not if he will pay. Else I would stay clear of such a fund.
I also believe that if a synthetic fund tracks the performance index (as opposed to the price index) you do get the "dividends".

The TER that I quoted is basically the commission ie management fee. At .38% seems better than most equivalent funds. Yes, as mentioned quarterly dividend. I generally prefer ETF's that reinvest dividends - however I think in HK where no need to worry about capital gains tax it doesn't matter too much. I am pulling the trigger on my portfolio, have sold some other APAC ETFs and will go into this Vanguard one.

Isn't it that people usually prefer reinvested dividends because of compounding rather than taxation issues?

[walkup]

I assume what they mean is that it's at the manager's discretion when to pay or to reinvest them, not if he will pay. Else I would stay clear of such a fund.
I also believe that if a synthetic fund tracks the performance index (as opposed to the price index) you do get the "dividends".


Isn't it that people usually prefer reinvested dividends because of compounding rather than taxation issues?

Sometimes even going through a prospectus with a fine tooth comb fails to nail all questions.