vanguard ftse biva mexico equity etf (vmex) · vanguard ftse biva mexico equity etf (vmex) seeks to...

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Gain broad exposure to the Mexican equity market with Vanguard’s first Mexico-domiciled ETF Vanguard FTSE BIVA Mexico Equity ETF (VMEX) For Institutional and Sophisticated Investors use only. Not for Public Distribution.

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Page 1: Vanguard FTSE BIVA Mexico Equity ETF (VMEX) · Vanguard FTSE BIVA Mexico Equity ETF (VMEX) seeks to track the performance of the FTSE BIVA Index, which covers the main sectors of

Gain broad exposure to the Mexican equity market with Vanguard’s first Mexico-domiciled ETF

Vanguard FTSE BIVA Mexico Equity ETF (VMEX)

For Institutional and Sophisticated Investors use only. Not for Public Distribution.

Page 2: Vanguard FTSE BIVA Mexico Equity ETF (VMEX) · Vanguard FTSE BIVA Mexico Equity ETF (VMEX) seeks to track the performance of the FTSE BIVA Index, which covers the main sectors of

Vanguard FTSE BIVA Mexico Equity ETF (VMEX) seeks to track the performance of the FTSE BIVA Index, which covers the main sectors of the Mexican economy across large, mid, and small-cap stocks, providing broad equity exposure at low cost.

DiversificationBy tracking the FTSE BIVA index, VMEX offers exposure to the principal sectors of the Mexican economy and allows companies of all market segments to be considered.

FTSE BIVA

Vanguard FTSE BIVA Mexico Equity ETF (VMEX)

Why invest?

Why VMEX?

1. World Economic Outlook Database (April 2019), based on nominal gross domestic product per the International Monetary Fund (2018).

With a GDP over $1.2 trillion, Mexico is home to the world’s 12th largest economy.1 The size of the economy makes Mexican equities a consideration for any portfolio, and this is especially true for Mexican investors.

Domestic equities offer many benefits, and are an important part of a well-diversified portfolio. Investing in Mexican equities can provide real returns over time, helping investors meet long-term objectives while also offering diversification to domestic bonds. And since domestic investments are exposed to more local economic and market forces, they offer diversification to global asset classes, which are influenced by a wider array of factors.

Once investors determine the appropriate asset allocation, it is important to select an investment that offers efficient access to the market. We believe that VMEX is a diverse, liquid, and inclusive product that can offer investors low-cost access to the Mexican equity market.

FinancialsMaterials

Industrials

Real Estate (3.77%)Consumer Discretionary (1.63%) Utilities (1.52%)Health Care (0.47%)

Communication Services

Consumer Staples

31.59%

18.64%

18.26%

12.71%

11.41%

Mexico is home to the world’s

12th largest economy.1

For Institutional and Sophisticated Investors use only. Not for Public Distribution.

Page 3: Vanguard FTSE BIVA Mexico Equity ETF (VMEX) · Vanguard FTSE BIVA Mexico Equity ETF (VMEX) seeks to track the performance of the FTSE BIVA Index, which covers the main sectors of

Founded 1975

Global AUM (USD) 6.2 trillion

- ETFs 1.2 trillion

- Mutual funds 4.9 trillion

Products offered424 funds offered worldwide

Fund nameVanguard FTSE BIVA Mexico Equity ETF

Benchmark FTSE BIVA Index

Ticker VMEX

Expense ratio 0.20%

Listing date 09/26/2019

Strategy Full Replication

Benchmark name FTSE BIVA Index

UniverseLarge, mid, and small-cap Mexican equities

Net market capitalization (MXNm)

3,060,137

Number of constituents 48

Index launch 02/12/2018

Top 10 holdings (% of index market cap)

66.87

An inclusive and yet liquid index

The FTSE BIVA Index includes REIT securities, an important sector in the global and Mexican equity market. The index also allows new, liquid issuers to be considered, providing investors with the greatest opportunity set over time.

Cost and efficiency

VMEX accumulates the underlying dividends of most stocks. It is also priced attractively, allowing investors to keep more of their money.

About the benchmark2Key fund facts1

About Vanguard3

Mutual funds 4.9 trillion

ETFs1.2 trillion

Global AUM (USD) 6.2 trillion

1. Data as of September 26, 20192. FTSE Russell as of December 31, 20193. Vanguard, as of 12/31/2019For Institutional and Sophisticated Investors use only. Not for Public Distribution.

Page 4: Vanguard FTSE BIVA Mexico Equity ETF (VMEX) · Vanguard FTSE BIVA Mexico Equity ETF (VMEX) seeks to track the performance of the FTSE BIVA Index, which covers the main sectors of

Connect with Vanguard® [email protected]/company/vanguard-mexico/Pedregal 24, Piso 23Col. Molino del Rey, C.P. 11040Ciudad de México, México

Important informationThis information is intended for investors outside the United States. The information contained herein does not constitute an offer or solicitation and may not be treated as an offer or solicitation in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. Broker-dealers, advisers and other intermediaries must determine whether their clients are eligible for investment in the products discussed herein.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

The distribution of this material and the offering of shares may be restricted in certain jurisdictions. The information contained in this material is for general guidance only, and it is the responsibility of any person or persons in possession of this material and wishing to make application for shares to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction.

The Russell Indexes and Russell® are registered trademarks of Russell Investments and have been licensed for use by The Vanguard Group, Inc. The products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the products.

VIGM, S.A. de C.V. Asesor en Inversiones Independiente (“Vanguard Mexico”) registration number: 30119-001-(14831)-19/09/2018. The registration of Vanguard Mexico before the Comisión Nacional Bancaria y de Valores (“CNBV”) as an Asesor en Inversiones Independiente is not a certification of Vanguard Mexico’s compliance with regulation applicable to Advisory Investment Services (Servicios de Inversión Asesorados) nor a certification on the accuracy of the information provided herein. The supervision scope of the CNBV is limited to Advisory Investment Services only and not all services provided by Vanguard Mexico.

Vanguard Mexico may recommend products of The Vanguard Group Inc. and its affiliates and such affiliates may maintain positions in the securities recommended by Vanguard Mexico.

This material is solely for informational purposes and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any security (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction.

All investing is subject to risk, including the possible loss of the money you invest. International investing is subject to additional risks, including the possibility that returns will be hurt by a decline in the value of foreign currencies or by unfavorable developments in a particular country or region. These risks are especially high in emerging markets. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. There is no guarantee that any forecasts made will come to pass. Past performance is no guarantee of future results.

The information contained in this material derived from third-party sources is deemed reliable, however Vanguard Mexico and The Vanguard Group Inc. are not responsible and do not guarantee the completeness or accuracy of such information.

Securities information provided in this document must be reviewed together with the offering information of each of the securities which may be found on Vanguard’s website: https://www.vanguardmexico.com/web/cf/mexicoinstitutional/en/home or www.vanguard.com

This document is for educational purposes only and does not take into consideration your background and specific circumstances nor any other investment profiling circumstances that could be material for taking an investment decision. We recommend to obtain professional advice based on your individual circumstances before taking an investment decision.

© 2020 The Vanguard Group, Inc.Vanguard Marketing Corporation, Distributor.All rights reserved.