Vanguard Investments Canada Inc. is one step closer to listing its first suite of Canadian exchange traded funds on the Toronto Stock Exchange.
The Canadian subsidiary of Valley Forge, Pennsylvania-based investment management giant The Vanguard Group, Inc. announced on Wednesday that it filed a final prospectus with securities regulators for six new ETFs.
Vanguard expects to list the four equity ETFs and two bond ETFs on the TSX, subject to meeting all regulatory requirements. They include:
- Vanguard MSCI Canada Index ETF (TSX: VCE)
- Vanguard MSCI U.S. Broad Market Index ETF (CAD-hedged) (TSX: VUS)
- Vanguard MSCI EAFE Index ETF (CAD-hedged) (TSX:VEF)
- Vanguard MSCI Emerging Markets Index ETF (TSX: VEE)
- Vanguard Canadian Aggregate Bond Index ETF (TSX: VAB)
- Vanguard Canadian Short-Term Bond Index ETF (TSX: VSB)
Vanguard has a reputation for providing low-fee investment funds, and the new Canadian ETFs will be no different.
Vanguard unveils ETFs for Canadian investors
The ETFs feature an average management fee of 0.24%, with one of them carrying a fee of just 0.09%. While the official management expense ratios for the ETFs will not be calculated until after their first year-end, the company expects the MERs to be “substantially similar” to the management fees for each fund.
In comparison, the average MER for an ETF in the industry is 0.88%, and the average MER for a Canadian mutual fund is 2.04%, according to Vanguard.
“Research by Vanguard, Morningstar and others has shown time and again that costs are the key determinate of mutual fund or ETF performance. By controlling costs, investors are on better footing towards reaching their long-term investment goals because they keep more of their returns,” said Atul Tiwari, managing director of Vanguard Investments Canada Inc.
Vanguard Investments Canada is the manager of the ETFs and The Vanguard Group will provide portfolio management services to the funds. Globally, Vanguard has $157 billion in ETF assets.