Indexing | Vanguard Netherlands Professional

Quality not commodity

Vanguard is a pioneer of index funds, having developed the first ever index fund for individual investors in 1976. Low-cost and simple by nature, index investing can be the ideal foundation for almost any investment portfolio, helping to achieve broad diversification.

We've built a sustainable, scaled and successful global index offering that is based on an uncompromising commitment to quality. We also recognise that, although it's important, quality isn't just about cost, it's about long-term value.

^1. Rather than being publicly traded or owned by a small group of individuals, The Vanguard Group, Inc., in the United States is owned by Vanguard's US-domiciled funds and ETFs. Those funds, in turn, are owned by their investors. This unique mutual structure aligns our interests with those of our investors and drives the culture, philosophy and policies throughout the Vanguard organisation worldwide. In Europe Vanguard leverages the scale, experience and resources of our established global business. Vanguard's ownership structure means that our clients don't have to worry that we'll be acquired. The company they invest with today will continue to serve them in the future.

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In 1976, Vanguard pioneered the concept of index investing by launching the first index fund for individual investors. That concept has come a long way since. Indeed, the rise in its popularity has been impressive. Amidst their widespread and growing appeal, It's tempting to regard indexing vehicles as mere commodities, with fund selection based purely on securing exposure to markets at the lowest possible cost.

Not at Vanguard. We've built a sustainable, scaled and successful global index offering that is built on an uncompromising commitment to quality that recognizes that although it's important, quality isn't just about cost, it's about long term value. It's why we offer exposure to reliable and diversified benchmarks through major, recognizable and transparent core indices across developed and emerging markets. It's why we count the world's most respected index providers as our main partners.

FTSE, MSCI, S&P and Bloomberg Barclays. It's why we only use physical replication in our portfolios, opting for full replication, the purest form of indexing wherever practical and sampling where it delivers more value for investors. It's why we combine our portfolio management and trading teams so that we can better manage index changes, rebalances corporate actions and cash flows, which in turn can improve replication and lower trading costs.

It's why we have one of the largest global index portfolio management teams in the industry and why we continuously invest in our team, process and technology to ensure we keep adding value as the market evolves. And it's why we use our global scale to promote good corporate behaviour, driving long term value at the companies we invest in through our investment stewardship program.

Why do we do all of this? Because representing the interests of our investors means doing all we can to provide index funds and ETFs that can be relied on to track precisely and deliver consistent, dependable performance. At Vanguard, we're committed to remaining at the forefront of indexing. Our unmatched experience over 40 plus years means that when you select a Vanguard index fund or ETF, you know exactly what you're going to get.

Low cost, high value, transparent access to a broad market exposure. Our 30 million investors worldwide trust us with their investments and rely on our ability to deliver long term value. We believe that it's our unerring commitment to quality, not commodity, that will help us give our index investors the best chance of investment success.

Why invest in Vanguard index funds?

An enviable cost advantage

The average expense ratio across our index mutual funds globally is 72% less than the industry average².

Depth and breadth

More than USD 6.9 trillion in assets in equity, bond and balanced index funds globally, as at 31 December 2023³.

Nearly 50 years of experience

We launched the first index fund for individual investors in 1976, and we've been perfecting our benchmark selection and tracking skills every day since.

^2. Vanguard average ongoing charge figure (OCF): 0.05%. Industry average expense ratio: 0.18%. All averages are for index mutual funds and are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, as at 31 December 2023.

^3. Source: Vanguard. Data as at 31 December 2023.

Transparent, liquid and low-risk replication

With our uncomplicated tracking methodology, we aim to consistently provide some of the tightest tracking in the field of index funds. Matching assets to their corresponding weights in the benchmark offers a purer form of index investing, thereby enhancing tracking, reducing counterparty risk and improving transparency.

Investment stewardship

Investment stewardship is a core capability for Vanguard and we are committed to excellence in this critical function.

We engage with the portfolio companies in our index funds. Our investment stewardship activities are the principal levers by which we keep companies focused on building long-term value for index-fund and ETF investors.

Learn more about our investment stewardship

Our low-cost index funds

See our index funds

Equity index funds

Vanguard is a pioneer of index investing, having developed the first ever index fund for individual investors in 1976. Low-cost and simple by nature, index funds can be the ideal foundation for almost any investment portfolio, helping to achieve broad diversification.

Global Stock Index Fund

European Stock Index Fund

See all our equity funds

More about equity at Vanguard

Fixed income index funds

We’ve built a sustainable, scaled and successful global index offering that’s based on an uncompromising commitment to quality, not commodity. We recognise that, for our investors, quality is about long-term value as well as cost.

Global Bond Index Fund

Global Corporate Bond Index Fund

Euro Government Bond Index Fund

See all fixed income index funds

More about fixed income at Vanguard

ESG index funds

By avoiding or reducing exposure to certain business activities while seeking to achieve a market-like return, exclusionary ESG products can meet the investment needs and preferences of a broad subset of ESG-aware investors.

ESG Developed World All Cap Equity Index Fund

ESG Global Corporate Bond Index Fund

See all ESG index funds

More about ESG at Vanguard

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested

Jul 4, 2024

4 min

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

Investments in smaller companies may be more volatile than investments in well-established blue chip companies.

ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.

Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.

For further information on risks please see the “Risk Factors” section of the prospectus on our website.

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This is directed at professional investors and should not be distributed to or relied upon by retail investors.

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Vanguard Funds plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.

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The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor for Vanguard Funds plc.

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Vanguard index funds