TORONTO–(BUSINESS WIRE)–Vanguard Investments Canada Inc. announced today that a final prospectus for five new Canadian-domiciled exchange-traded funds (Vanguard ETFs) has been receipted by the securities regulatory authorities. Vanguard expects to list the new ETFs on Toronto Stock Exchange (TSX) subject to meeting all regulatory and TSX requirements.
|Name of Vanguard ETF™||Benchmark Index||Annual Management Fee*(% of NAV)||TSX Ticker Symbol|
|Vanguard FTSE Canadian High
Dividend Yield Index ETF
|FTSE Canada High Dividend Yield Index||0.30%||VDY|
|Vanguard FTSE Canadian
Capped REIT Index ETF
|FTSE Canada All Cap Real Estate Capped
|Vanguard Canadian Short-Term
Corporate Bond Index ETF
|Barclays Global Aggregate Canadian
Credit 1-5yr Float Adjusted Bond Index
|Vanguard S&P 500 Index ETF||S&P 500 Index||0.15%1||VFV|
|Vanguard S&P 500 Index
|S&P 500 Index (CAD-Hedged)||0.15%1||VSP|
1 This Vanguard ETF invests primarily in a U.S.-domiciled Vanguard fund. To ensure that there is no duplication of management fees chargeable in connection with the Vanguard ETF and its investment in the Vanguard fund, the management fee payable by the Vanguard ETF to Vanguard Investments Canada Inc. set out above is reduced by the aggregate of the management fee payable by the Vanguard fund to an affiliate of Vanguard Investments Canada Inc. and certain expenses of the Vanguard fund that are paid directly by the Vanguard fund (together, the “Vanguard fund total expense ratio”). The Vanguard fund total expense ratio is embedded in the market value of the Vanguard fund shares in which the Vanguard ETF invests.
Vanguard Investments Canada’s initial lineup of six ETFs was listed on TSX on December 6, 2011, and has attracted more than $300 million in total assets. With the addition of the five new ETFs, Vanguard’s 11 ETFs will feature a low average management fee of 0.23%.
“While you cannot control what happens in stock or bond markets, one thing an investor can have a degree of control over is what they pay,” said Atul Tiwari, Managing Director of Vanguard Investments Canada. “Over the long-term, the compounding effect of fees can detract significantly from actual performance. However, Vanguard ETFs are distinguished in the market by low cost, broadly diversified portfolios.”
Vanguard is a global leader in ETFs with more than $230 billion in ETF assets, and has ETFs listed on exchanges in the U.S., Mexico, the United Kingdom, and Australia. In the U.S., Vanguard led the industry with $36 billion in ETF cash flow in 2011, and it continues to lead the industry in 2012, with $41 billion in cash flow through July (source: Bloomberg and Vanguard).
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. Vanguard is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $2 trillion in global assets. Vanguard offers more than 170 funds to U.S. investors and more than 70 additional funds in non-U.S. markets. For more information, please visit vanguardcanada.ca.
All asset figures are as of September 30, 2012, unless otherwise noted.