Vanguard adds five equity ETFs

12 August 2013 | News from Vanguard

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Our lineup of exchange-traded funds in Canada grew to 16 with the addition of five equity ETFs now trading on Toronto Stock Exchange. We also lowered the management fees for two existing ETFs.

The new Vanguard ETFs™ represent the latest expansion of offerings from Vanguard Investments Canada Inc., which has grown to more than $1 billion in assets in less than two years.

The new Canada-domiciled ETFs, which began trading on August 12, 2013, are:

  • Vanguard FTSE Canada All Cap Index ETF (VCN)
  • Vanguard U.S. Total Market Index ETF (VUN)
  • Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) (VGH)
  • Vanguard U.S. Dividend Appreciation Index ETF (VGG)
  • Vanguard FTSE Developed ex North America Index ETF (VDU)

VCN seeks to track the FTSE Canada All Cap Index, a market-capitalization weighted index that broadly covers large-, mid- and small-cap stocks that trade in the Canadian market.

VUN seeks to track the CRSP US Total Market Index, an index that provides coverage of primarily large-cap U.S. stocks.

Both VGG and VGH target the NASDAQ US Dividend Achievers Select Index, an index focused on U.S. companies that have a record of increasing dividends over time. VGH uses the version of the index that is hedged to the Canadian dollar.

VDU aims to mirror the FTSE Developed ex North America Index, a market-capitalization weighted index composed of large- and mid-cap stocks in developed markets, excluding the U.S. and Canada.

“Vanguard ETFs are distinguished in the market by low-cost, broadly diversified portfolios,” said Atul Tiwari, managing director of Vanguard Investments Canada. “Our new ETFs will offer the same benefits, enabling financial advisors and investors to better construct broadly diversified portfolios at a low cost.”

We also announced lower management fees for Vanguard FTSE Emerging Markets Index ETF (VEE) and Vanguard FTSE Developed ex North America Index ETF (CAD-hedged) (VEF). Effective August 12, 2013, the management fee of VEE fell to 0.33% from 0.49%. Effective July 24, 2013, the management fee of VEF decreased to 0.28% from 0.37%.

We entered the Canadian market with six ETFs in December 2011 and listed five additional ETFs on TSX in November 2012. Vanguard expects to launch two fixed-income Canada-domiciled ETFs in the near future.

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