Toronto-based Vanguard Investments Canada Inc. said Monday that five new equity Canada-domiciled exchange-traded funds (Vanguard ETFs) will begin trading this morning on Toronto Stock Exchange.
Vanguard, which entered the Canadian market in December 2011 and saw its Canadian ETFs surpass $1 billion in assets earlier this year, now offers 16 low-cost, high-quality ETFs.
Vanguard ETF |
Benchmark Index |
Annual Management Fee |
TSX Ticker Symbol |
Vanguard FTSE Canada All Cap Index ETF |
FTSE Canada All Cap Index |
0.12% |
VCN |
Vanguard FTSE Developed ex North America Index ETF |
FTSE Developed ex North America Index |
0.28% |
VDU |
Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) |
NASDAQ US Dividend Achievers Select Index (CAD hedged) |
0.28% |
VGH |
Vanguard U.S. Dividend Appreciation Index ETF |
NASDAQ US Dividend Achievers Select Index |
0.28% |
VGG |
Vanguard U.S. Total Market Index ETF |
CRSP US Total Market Index |
0.15% |
VUN |
“Vanguard ETFs are distinguished in the market by low-cost, broadly diversified portfolios,” said Atul Tiwari, principal and managing director of Vanguard Investments Canada, in a release. “Our new ETFs follow this same principle, enabling financial advisors and investors to better construct broadly diversified portfolios at a low cost.”
Vanguard also announced reduced management fees for Vanguard FTSE Emerging Markets Index ETF (TSX:VEE) and Vanguard FTSE Developed ex North America Index ETF (CAD-hedged) (TSX:VEF).
Effective immediately, the management fee of VEE fell to 0.33% from 0.49% and, effective July 24, the management fee of VEF fell to 0.28% from 0.37%.
The new FTSE ex Developed North America Index ETF (VDU) is the unhedged version of VEF. The new ETF is meant to provide investors and advisors with more choice, said Tiwari, in an interview.
“Those who wish to hedge to the Canadian dollar can now do so,” he says, “and those who do not want to hedge to the Canadian dollar but would rather have the currency impact on their portfolios, those options are now available as well.”
With the addition of the five new ETFs, Vanguard’s lineup of 16 ETFs will feature an industry-low average management fee of 0.21%.
Additionally, Vanguard expects to launch two new fixed income Canada-domiciled ETFs in the near future.
Vanguard ETF |
Benchmark Index |
Annual Management Fee |
TSX Ticker Symbol |
Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) |
Barclays U.S. Aggregate Float Adjusted Index (CAD Hedged) |
0.25% |
VBU |
Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (CAD Hedged) |
0.35% |
VBG |
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages more than $1 billion in assets.