Lower fees on three Vanguard bond ETFs mean more savings for you
19 May 2020 | ETF information
At Vanguard, lowering fees is part of our mission to help give investors the best chance for investment success. Investors can’t control the markets, but they can control the costs of investing. Providing low-cost investments isn’t a pricing strategy for us. It’s how we do business. Vanguard’s scale also helps to keep costs low. As our assets under management increase globally, we can reduce expense ratios for the investors in our funds.
That’s why we’re reducing management fees on three of our high quality Canadian Bond ETFs — the Vanguard Canadian Long-Term Bond Index ETF (VLB), the Vanguard Canadian Government Bond Index ETF (VGV) and the Vanguard Canadian Corporate Bond Index ETF (VCB) — effective as of May 15, 2020.
When financial markets drop, high quality bond ETFs can serve as a stabilizing force in your portfolio. And now, with their fees reduced, you’ll be able to keep more of your returns.
This change marks our sixth significant fee reduction in the last seven years.
|Vanguard ETF™||TSX ticker symbol||New management fee||Previous management fee|
|Vanguard Canadian Long-Term Bond Index ETF||VLB||0.15%||0.17%|
|Vanguard Canadian Government Bond Index ETF||VGV||0.15%||0.25%|
|Vanguard Canadian Corporate Bond Index ETF||VCB||0.15%||0.23%|
These fee reductions continue Vanguard’s trend of passing on cost-savings to investors. They follow reductions that took effect in 2013, 2014, 2015, 2018 and 2019, which have already saved Canadians over $10 million1 in hard-earned savings.
The Vanguard Effect puts money in investors' pockets
Vanguard ETFs cost 57% less than the ETF industry average, based on asset-weighted management expense ratios (MERs)2. Since we entered the market, industry investment fees have come down significantly, helping Canadians keep more of their investment dollars.
The same thing happened in the United States, the United Kingdom, and Australia after Vanguard’s entry into each market — and it’s now known as the “Vanguard Effect.” Ask your advisor how the Vanguard Effect can help you reach your financial goals.
Curious about how bond ETFs could benefit your portfolio?
1 Sources: Vanguard, Strategic Insight and Morningstar Direct. Since Vanguard entered the market in 2011, Canadian investors have realized nearly $10 million in cumulative savings through expense reductions on our ETFs.
2 Source: Morningstar Direct and Vanguard analysis, as of December 31, 2018. Calculated as the percentage change of the asset-weighted MER between the industry and Vanguard.
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