Lower fees on three Vanguard bond ETFs mean more savings for your clients

19 May 2020 | ETF information


At Vanguard, lowering fees is part of our mission to give your clients the best chance for investment success. Investors can’t control the markets, but they can control the costs of investing. Providing low-cost investments isn’t a pricing strategy for us. It’s how we do business. Vanguard’s scale also helps to keep costs low. As our assets under management increase globally, we can reduce expense ratios for the investors in our funds.

That’s why we’ve reduced management fees on three of our high quality Canadian Bond ETFs—the Vanguard Canadian Long-Term Bond Index ETF (VLB), the Vanguard Canadian Government Bond Index ETF (VGV) and the Vanguard Canadian Corporate Bond Index ETF (VCB)—effective as of May 15, 2020.

When financial markets drop, high quality bond ETFs can serve as a stabilizing force in your clients’ portfolios. And now, with their fees reduced, your clients will be able to keep more of their returns.

This change marks our sixth significant fee reduction in the last seven years.

Vanguard ETF™ TSX ticker symbol New management fee Previous management fee
Vanguard Canadian Long-Term Bond Index ETF VLB 0.15% 0.17%
Vanguard Canadian Government Bond Index ETF VGV 0.15% 0.25%
Vanguard Canadian Corporate Bond Index ETF VCB 0.15% 0.23%

These fee reductions continue Vanguard’s trend of passing on cost-savings to investors. They follow reductions that took effect in 2013, 2014, 2015, 2018 and 2019, which have already saved Canadians over $10 million1 in hard-earned savings.

The Vanguard Effect puts money in investors’ pockets

Vanguard ETFs cost 57% less than the ETF industry average, based on asset-weighted management expense ratios (MERs)2. Since we entered the market, industry investment fees have come down significantly, helping Canadians keep more of their investment dollars.

The same thing happened in the United States, the United Kingdom, and Australia after Vanguard’s entry into each market—and it’s now known as the “Vanguard Effect.”

The “Vanguard Effect” is a powerful story—and it’s more proof of how your service helps your clients keep and grow their hard-earned wealth.

Want to see how bond ETFs would fit in your client portfolios?

Call your Vanguard representative today!

1 Sources: Vanguard, Strategic Insight and Morningstar Direct. Since Vanguard entered the market in 2011, Canadian investors have realized nearly $10 million in cumulative savings through expense reductions on our ETFs.

2 Source: Morningstar Direct and Vanguard analysis, as of December 31, 2018. Calculated as the percentage change of the asset-weighted MER between the industry and Vanguard.

Important information

Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc. and are available across Canada through registered dealers.

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