VRIF: An easy way to boost income in retirement (or before)

16 September 2020 | ETF information

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According to a recent Vanguard Canada survey, saving for retirement is the number one investment objective for Canadians (78% list it in the top two).1 In addition, the risk of outliving their savings is a real concern for many Canadians.

In order to keep up with inflation while meeting basic spending needs during retirement, many Canadians have been turning to all-in-one, multi-asset investment products that provide a steady monthly income. (ETFs in this category have grown 62% each of the last three years.)

That’s why we created the Vanguard Retirement Income ETF Portfolio (ticker: VRIF). Investors need a low-cost, transparent solution to boost their income, whether for retirement or just as a supplement to other earnings.

VRIF’s convenient “all-in-one” design is simple yet sophisticated in its structure. As well as being easy to use, it brings broad diversification—essential for safeguarding your assets during turbulent market conditions; full transparency; and a regular monthly payout.

Expert management for less

Like our other Asset Allocation ETFs, VRIF helps you keep more money in your pockets and saves you time. Here’s how:

  • Fixed dollar amount paid monthly – targeted 4% yield at launch.
  • 0.29% management fee – nearly one third of the cost of the industry average income fund.
  • Confidence in the expert management by Vanguard, a global leader in single-ticket asset allocation ETF portfolios.
  • Tax-friendly ”total-return” approach. When distributing from capital appreciation, only the difference between the cost basis and the sale price is taxed.
  • Time-varying asset allocations keeps your portfolios well diversified and focused on the 4% income goal.

Why VRIF?

Since their launch in 2018, our suite of all-in-one asset allocation ETFs have reached $3.58 billion CAD2 in assets. VRIF complements this line-up by investing in a mix of equity and fixed income securities to provide a consistent income stream along with the possibility of modest capital growth.

With a 0.29% management fee, it gives you:

  • A steady payout—a feature unique to this ETF and not available in a self-constructed model.
  • Intensive oversight by Vanguard’s Investment Strategy Group—necessary for managing the movement of allocations in an income-focused asset allocation ETF.

Whether for retirement or just as a supplement to other earnings, VRIF’s embedded discipline boosts your income while saving you the time it takes to implement a complex asset allocation strategy.

Ask your Vanguard representative about VRIF today.

1 According to the results of a Vanguard Canada Brand & Advertising Tracker Research investor poll. July 2020.

2 As at August 26, 2020.

Important information

The views expressed in this material are based on the author's assessment as of the first publication date September 16, 2020, are subject to change without notice and may not represent the views and/or opinions of Vanguard Investments Canada Inc. The author may not necessarily update or supplement their views and opinions whether as a result of new information, changing circumstances, future events or otherwise.

Certain statements in this presentation may be considered "forward-looking information" which may be material, involve risks, uncertainties or other assumptions and there is no guarantee that actual results will not differ significantly from those expressed in or implied by these statements. Factors include, but are not limited to, general global financial market conditions, interest and foreign exchange rates, economic and political factors, competition, legal or regulatory changes and catastrophic events. Any predictions, projections, estimates or forecasts should be construed as general investment or market information and no representation is being made that any investor will, or is likely to, achieve returns similar to those mentioned herein.

While this information has been compiled from proprietary and non-proprietary sources believed to be reliable, no representation or warranty, express or implied, is made by The Vanguard Group, Inc., its subsidiaries or affiliates, or any other person (collectively, "The Vanguard Group") as to its accuracy, completeness, timeliness or reliability. The Vanguard Group takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this material.

This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Please consult your financial and/or tax advisor for financial and/or tax information applicable to your specific situation.

In this material, references to "Vanguard" are provided for convenience only and may refer to, where applicable, only The Vanguard Group, Inc., and/or may include its affiliates, including Vanguard Investments Canada Inc.

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