Vanguard introduces international high dividend yield ETF
28 August 2018 | News from Vanguard
TORONTO (August 28, 2018) — Vanguard Investments Canada Inc. today announced the listing of the Vanguard FTSE Developed ex North America High Dividend Yield Index ETF, providing a low-cost and global investment option for investors looking for an income component within their portfolios. The ETF began trading on the TSX today with a management fee of 0.28%1.
"Canadian investors and advisors are increasingly looking for global income-oriented solutions,” said Atul Tiwari, managing director of Vanguard Investments Canada Inc. "This ETF helps meet that need with an easy-to-understand investment process featuring strong equity yield potential with low-costs and a disciplined risk management framework.”
Vanguard FTSE Developed ex North America High Dividend Yield Index ETF (TSX:VIDY) - The Vanguard FTSE Developed ex North America High Dividend Yield Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad international equity index that measures the investment return of common stocks of companies characterized by high dividend yield, with a focus on those located in developed markets, excluding North America.
|ETF||Benchmark||Management Fee1||TSX Ticker Symbol|
|Vanguard FTSE Developed ex North America High Dividend Yield Index ETF||FTSE Developed ex North America High Dividend Yield Index||0.28%||VIDY|
1 The management fee is equal to the fee paid by the Vanguard fund to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard fund.
"We have seen that Canadian investors value equity income options that are low-cost, global and well-diversified," said Tim Huver, head of product, Vanguard Investments Canada Inc. "This ETF provides exposure to the largest high dividend-paying companies across a diversified mix of 23 developed international markets outside of North America."
The new ETF makes quarterly distributions. It is rebalanced annually and offers exposure to large-cap and mid-cap companies characterized by above-average dividend yields.
Vanguard now offers a suite of 37 ETFs in Canada with over CAD $17 billion in assets across its broad-based line-up of investment solutions, including mutual funds. Canadians hold over CAD $30 billion in Vanguard investments (including both Canadian and U.S. funds).
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages over CAD $17 billion in assets (as of July 31, 2018), with 37 Canadian ETFs currently available. The Vanguard Group, Inc. is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages USD $5.1 trillion (CAD $6 trillion) in global assets, including over USD 900 billion (CAD $1.2 trillion) in global ETF assets (as of June 30, 2018). Vanguard has offices in the United States, Canada, Latin America, Europe, Australia and Asia. The firm offers 400 funds, including ETFs, to its more than 20 million investors worldwide.
Vanguard operates under a unique operating structure. Unlike firms that are publicly held or owned by a small group of individuals, The Vanguard Group, Inc. is owned by Vanguard's U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by Vanguard clients. This unique mutual structure aligns Vanguard interests with those of its investors and drives the culture, philosophy, and policies throughout the Vanguard organization worldwide. As a result, Canadian investors benefit from Vanguard's stability and experience, low costs, and client focus. For more information, please visit vanguardcanada.ca.
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