Canadian stocks and bonds represent about only 4% of global markets. Vanguard's five new low-cost ETFs offer you the rest of the world:
- Our new fixed income ETFs use a currency hedging strategy that allows investors to benefit from the performance of U.S. and international bonds without the volatility that comes with changes in currency valuations.
- Our new equity ETFs include an all-world ETF, excluding Canada, and ETFs that track European and Asian indexes.
The less you pay, the more you keep. Vanguard ETF™ fees are 89% lower than the average Canadian mutual fund.1
Vanguard FTSE All-World ex Canada Index ETF
- Intended for investors who want broad exposure to the global equity market, excluding Canada.
- Seeks to track the performance of FTSE All-World ex Canada Index.
- Invests primarily in four U.S.-domiciled Vanguard ETFs: Vanguard Large-Cap ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF and Vanguard FTSE Emerging Markets ETF.
- Provides exposure to about 2,900 stocks tracked by the benchmark.
- Uses a passively managed, "ETF of ETFs" indexing strategy to provide exposure to large- and mid-capitalization stocks in developed and emerging markets, excluding Canada.
Vanguard FTSE Developed Europe Index ETF
- Intended for investors who want exposure to stocks in developed markets in Europe.
- Seeks to track the performance of FTSE Developed Europe Index.
- Invests primarily in the U.S.-domiciled Vanguard FTSE Europe ETF.
- Provides exposure to more than 500 stocks tracked by the benchmark.
- Uses a passively managed, index-replication strategy to provide exposure to large- and mid-capitalization stocks in developed European countries.
Vanguard FTSE Developed Asia Pacific Index ETF
- Intended for investors who want exposure to stocks in developed markets in Asia.
- Seeks to track the performance of FTSE Developed Asia Pacific Index.
- Invests primarily in the U.S.-domiciled Vanguard FTSE Pacific ETF.
- Provides exposure to more than 800 stocks tracked by the benchmark.
- Uses a passively managed, index-replication strategy to provide exposure to large- and mid-capitalization stocks in developed Asian countries.
Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged)
- Intended for investors who want moderate current income with high credit quality.
- Seeks to track the performance of Barclays U.S. Aggregate Float Adjusted Bond Index (CAD Hedged).
- Invests primarily in the U.S.-domiciled Vanguard Total Bond Market ETF and hedges U.S. dollar exposure to the Canadian dollar.
- Provides exposure to more than 6,000 bonds tracked by the benchmark.
- Uses a passively managed, index-sampling strategy to provide exposure to investment-grade U.S. fixed income securities.
Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged)
- Intended for long-term investors who want broad exposure to investment-grade fixed income securities in major bond markets globally.
- Seeks to track, to the extent possible and before fees and expenses, the performance of Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (CAD Hedged).
- Invests primarily in the U.S.-domiciled Vanguard Total International Bond Market ETF and hedges U.S. dollar exposure to the Canadian dollar.
- Provides exposure to more than 2,000 bonds tracked by the benchmark.
- Uses a passively managed, index-sampling strategy to gain exposure to bond markets outside the U.S.
1 Based on MER data as of December 31, 2013, as collected by Investor Economics and reported by Vanguard in the Management Report of Fund Performance. The average MER for Vanguard ETFs™ in Canada was 0.22% on an asset-weighted basis, while the industry average MER for Canada-domiciled mutual funds was 2.01%. Expense ratios are averages; individual investors may not experience similar savings by investing in a Vanguard ETF. Actual expenses for a specific Vanguard ETF may be higher or lower than this average figure. Unlike mutual funds, there are no sales loads on Vanguard ETFs. ETFs are priced continuously and bought and sold throughout the day in the secondary market (at a premium or discount to NAV) which entails paying additional costs, such as commissions and bid/ask spreads.
The management fee is equal to the current fee paid by the Vanguard ETF to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard ETF. For any Vanguard ETF (VXC, VE, VA, VBU, VGB) that invests in another Vanguard fund, the management fee also includes any fees paid to Vanguard Investments Canada Inc. or its affiliates by such other Vanguard fund as well as certain expenses of the other Vanguard fund that are paid directly by the other Vanguard fund. Vanguard Investments Canada Inc. may decide, in its discretion, to pay for certain other fees and expenses, such as the ongoing operating expenses of the Investment Review Committee and currency hedging fees.
All rights in the FTSE Indexes (the "Indexes") vest in FTSE International Limited ("FTSE"). "FTSE®" is a trademark of London Stock Exchange Group companies and is used by FTSE under licence. Vanguard funds (the "Products") have been developed solely by Vanguard. The Indexes are calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Products and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indexes or (b) investment in or operation of the Products. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Products or the suitability of the Indexes for the purpose to which they are being put by Vanguard.
The Vanguard ETFs are not sponsored, endorsed, sold or promoted by Barclays. Barclays does not make any representation regarding the advisability of Vanguard ETFs or the advisability of investing in securities generally. Barclays' only relationship with Vanguard is the licensing of the Index which is determined, composed and calculated by Barclays without regard to Vanguard or the Vanguard ETFs. Barclays 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 has no obligation or liability in connection with administration, marketing or trading of the Vanguard ETFs.
Notes on risk: All investments, including those that seek to track indexes, are subject to risk, including the possible loss of principal. Investing in ETFs involves risk, including the risk of error in tracking the underlying index. Investments in bond funds are subject to interest rate, credit, and inflation risk. Foreign investing involves additional risks including currency fluctuations and political uncertainty.