Q&A: Vanguard Global Value Factor UCITS ETF

Q1: What is the underlying strategy of this Fund?

This is a long-only, broadly diversified portfolio that seeks significant exposure to the value factor, which has been shown to provide long-term out performance. The fund invests in equity securities included in the FTSE Developed All Cap Index and the Russell 3000 Index.

Vanguard’s Quantitative Equity Group (QEG) uses a proprietary quantitative model to evaluate the equity investment universe, which is composed of large, mid and small cap equity securities from developed markets across the world, and includes a diverse representation of companies, market sectors and industry groups.

The model then implements a rules-based active approach that aims to assess the factor exposures of securities, favouring equity securities which, when compared to other securities in the investment universe, have lower prices relative to their fundamental measures of value (such measures include price-to-book, forward earnings to price and operating cash flow to p