VRIF: An easy way to boost income in retirement (or before)
16 September 2020 | ETF information
According to a recent Vanguard Canada survey, saving for retirement is the number one investment objective for Canadians (78% list it in the top two).1 In addition, the risk of outliving their savings is a real concern for many Canadians.
In order to keep up with inflation while meeting basic spending needs during retirement, many Canadians have been turning to all-in-one, multi-asset investment products that provide a steady monthly income. (ETFs in this category have grown 62% each of the last three years.)
That’s why we created the Vanguard Retirement Income ETF Portfolio (ticker: VRIF). Investors need a low-cost, transparent solution to boost their income, whether for retirement or just as a supplement to other earnings.
VRIF’s convenient “all-in-one” design is simple yet sophisticated in its structure. As well as being easy to use, it brings broad diversification—essential for safeguarding your assets during turbulent market conditions; full transparency; and a regular monthly payout.
Expert management for less
Like our other Asset Allocation ETFs, VRIF helps you keep more money in your pockets and saves you time. Here’s how:
- Fixed dollar amount paid monthly – targeted 4% yield at launch.
- 0.29% management fee – nearly one third of the cost of the industry average income fund.
- Confidence in the expert management by Vanguard, a global leader in single-ticket asset allocation ETF portfolios.
- Tax-friendly ”total-return” approach. When distributing from capital appreciation, only the difference between the cost basis and the sale price is taxed.
- Time-varying asset allocations keeps your portfolios well diversified and focused on the 4% income goal.
Since their launch in 2018, our suite of all-in-one asset allocation ETFs have reached $3.58 billion CAD2 in assets. VRIF complements this line-up by investing in a mix of equity and fixed income securities to provide a consistent income stream along with the possibility of modest capital growth.
With a 0.29% management fee, it gives you:
- A steady payout—a feature unique to this ETF and not available in a self-constructed model.
- Intensive oversight by Vanguard’s Investment Strategy Group—necessary for managing the movement of allocations in an income-focused asset allocation ETF.
Whether for retirement or just as a supplement to other earnings, VRIF’s embedded discipline boosts your income while saving you the time it takes to implement a complex asset allocation strategy.
Ask your Vanguard representative about VRIF today.
1 According to the results of a Vanguard Canada Brand & Advertising Tracker Research investor poll. July 2020.
2 As at August 26, 2020.
The views expressed in this material are based on the author's assessment as of the first publication date September 16, 2020, are subject to change without notice and may not represent the views and/or opinions of Vanguard Investments Canada Inc. The author may not necessarily update or supplement their views and opinions whether as a result of new information, changing circumstances, future events or otherwise.
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