The Vanguard Energy fund, which invests in U.S. equities and ETFs, has been gaining ground in recent months as more investors look to diversification and to diversified portfolios, said Andrew Smith, a managing director at Investment Management Services, which manages $2.5 billion in assets for institutional investors.
The fund, whose main holdings include U.K. and Canadian companies, has seen a 2.5 per cent gain in the past year.
“The fund is still a bit of a low-hanging fruit for investors,” Smith said.
“It’s an ETF, and it’s still relatively low-cost.”
He said investors should consider the fund if they are thinking of diversifying, but they should also keep in mind that it has some restrictions.
For example, the fund is only available to people with a minimum of $1 million in total assets.
The ETF is also not designed to take advantage of high-risk investments, such as bonds, shares of foreign companies or bonds held in an ETF.
Vanguard said the fund has a low trading volume and it invests in an “unregulated and diversified portfolio of ETFs” that includes funds from Vanguard, ETF Select, U.P. and other companies.
But it said it has invested in several ETFs that are less regulated and that those ETFs are still under review.
“We have been in the market for a long time, and we’re getting ready to make some changes,” Smith added.
“There’s a lot of people looking to get into the ETFs and not necessarily the ETF markets.”
Investors looking to diversifying are often looking for a diversified fund that is well-designed for their investment needs, said Ian Taylor, an adviser at Wealth Management Associates, a fund adviser based in San Diego.
“But the diversification market is very big, and a lot more people are interested in diversification than we would like to admit,” Taylor said.
Taylor said it is important for investors to understand the restrictions on the fund before they buy it.
“Diversification isn’t about buying and selling the same ETF,” Taylor added.
But there are some ETFs for investors looking to buy into, or diversify from, ETFs.
For instance, Vanguard has its own index fund, the Vanguard Total Stock Market ETF, which tracks the Dow Jones Industrial Average and the S&P 500 index.
Another ETF, the U.C. Aggregate, tracks the S.&%;P MidCap 400 index, and ETF Select is another ETF, also known as ETF Select Select.
“I think it is definitely a more diversified ETF market,” Taylor noted.
“If you’re looking for the cheapest ETF for a particular investment, it is Vanguard.”
Another common misconception is that it is only a diversification fund for the rich.
“People think the same things as the rest of us,” Taylor explained.
“When people look at the ETF, they are looking for some of the best-performing stocks, and then the other ETFs they’re looking at are some of less-performing companies.”