Toronto-based Vanguard Investments Canada Inc. is looking to expand its footprint in Canada’s exchange-traded fund (ETF) industry with the introduction of its first set of actively managed factor ETFs.
The firm has filed a preliminary prospectus with Canadian securities regulators for a selection of globally focused ETFs that are each expected to have a management fee of 0.35%, according to Vanguard’s announcement on Monday.
The proposed new ETFs are:
> Vanguard Global Liquidity Factor ETF, which seeks to provide long-term capital appreciation by aiming to capture potential excess return through investments in less liquid equities from developed markets.
> Vanguard Global Minimum Volatility ETF, which looks to provide long-term capital appreciation with reduced volatility compared with global equity markets by investing in equities from developed and emerging markets.
> Vanguard Global Momentum Factor ETF, which seeks to provide long-term capital appreciation by aiming to capture potential excess return through investments in equities that have achieved recent strong performance from developed markets.
> Vanguard Global Value Factor ETF, which looks to provide long-term capital appreciation by aiming to capture potential excess return by investing in equities from developed markets that have low prices relative to fundamentals.
Vanguard’s Quantitative Equity Group will manage the new ETFs if they are approved by regulators. These new products would join the firm’s current lineup of 23 index-based ETFs.