Rebecca Katz: So Joel, I understand that ETFs have a net asset value and also a market price. What's the difference between the two?

Joel: So the net asset value is the value of the securities in the portfolio or the value of the fund if you will. So you take the assets and the liabilities, and you compute a per share price, and that's sort of the value of the portfolio. The market price is where you're able to transact in the marketplace for the ETF.

And ETFs are really structured so that the market price can be very close to the net asset value, but it could deviate a little bit over short periods of time given certain supply and demand characteristics.

Important information

Vanguard ETFs® will be issued, exchanged and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of units or baskets of securities. (“Prescribed Unit”). All transactions of less than Prescribed Unit aggregations are traded on the TSX and other trading venues with the assistance of a registered investment dealer. The number of Prescribed Units is determined by Vanguard Investments Canada Inc., from time to time for the purpose of subscription orders, exchanges, and redemptions or for other purposes.

Notes on risk: Investments, including those that seek to track indexes, are subject to risk, including the possible loss of principal. Investing in ETFs involves risk, including risks associated with market volatility or short-term events. Diversification does not ensure a profit or protect against a loss in a declining market.