TORONTO--(BUSINESS WIRE)--The following six new Vanguard exchange-traded funds have closed the initial offering of their units and will begin trading this morning on Toronto Stock Exchange, bringing low-cost, high-quality, and broadly diversified investment options to Canadian financial advisors and investors.
|Name of Vanguard ETFTM||Benchmark Index||Annual Management Fee (% of NAV)*||TSX Ticker Symbol|
|Vanguard MSCI Canada Index ETF||MSCI Canada Index||0.09%||VCE|
|Vanguard MSCI U.S. Broad Market Index ETF (CAD-hedged)||
MSCI US Broad Market
100% Hedged to CAD Index
|Vanguard MSCI EAFE Index ETF (CAD-hedged)||MSCI EAFE 100% Hedged to CAD Index||0.37%1||VEF|
|Vanguard MSCI Emerging Markets Index ETF||MSCI Emerging Markets Index||0.49%1||VEE|
|Vanguard Canadian Aggregate Bond Index ETF||Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index||0.20%||VAB|
|Vanguard Canadian Short-Term Bond Index ETF||Barclays Capital Global Aggregate Canadian Government/Credit 1-5 Year Float Adjusted Bond Index||0.15%||VSB|
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.
Atul Tiwari, Managing Director of Vanguard Investments Canada Inc., comments:
“Our initial lineup of Vanguard ETFs offers financial advisors and investors access to key portfolio building blocks, with the benefit of Vanguard’s trademark low costs and proven index management expertise. In particular, our ETFs will provide investors with low-cost options amid a sea of high-cost investments, and, along with their straightforward and easy-to-understand approach, represent an unmatchable value.”
Since pioneering the first retail index mutual fund three decades ago, Vanguard has become a leading global provider of index vehicles, including ETFs. The firm has CAD $169 billion in ETF assets, and has ETFs listed on exchanges in the United States, Mexico and Australia. In the United States, The Vanguard Group, Inc. leads the industry with nearly CAD $30 billion in ETF cash flow through October 2011 (sources: 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 CAD $1.64 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 October 31, 2011, unless otherwise noted. All data exclude the new Vanguard ETFs.
Commissions, management fees, and expenses all may be associated with the Vanguard ETFs. This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies are available from Vanguard Investments Canada Inc. at www.vanguardcanada.ca. Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
The Vanguard ETFs are not sponsored, endorsed, sold or promoted by Barclays Capital. Barclays Capital does not make any representation regarding the advisability of Vanguard ETFs or the advisability of investing in securities generally. Barclays Capital’s only relationship with Vanguard is the licensing of the Index which is determined, composed and calculated by Barclays Capital without regard to Vanguard or the Vanguard ETFs. Barclays Capital has no obligation to take the needs of Vanguard or the owners of the Vanguard ETFs into consideration in determining, composing or calculating the Index. Barclays Capital has no obligation or liability in connection with administration, marketing or trading of the Vanguard ETFs.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. The prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds.