Vanguard ETFs land on TSX

By Staff | December 6, 2011 | Last updated on December 6, 2011
2 min read

Vanguard has officially arrived on Canadian shores, launching six new exchange-traded funds which began trading on the Toronto Stock Exchange this morning.

“We feel quite good about [launching in a bear market,]” says Atul Tiwari, managing director of Vanguard Investments Canada, who’s been in the role since May. “During this time, investors are looking at the impact of fees on their investments and are demanding greater transparency.”

The MSCI Canada Index ETF has the lowest MER of any mutual fund or ETF in Canada, and its 0.09% fee is 25 times lower than the average Canadian equity fund. Its comparable U.S. equity product has a 0.07% fee, and the company attributes the difference to economies of scale and the cost of launching new Canadian products.

Vanguard is considering fixed-income and dividend ETFs for its next phase of product offerings, but says it will consult advisors and clients before finalizing that lineup.

Tiwari says Vanguard is “supportive in principle” of joining the Canadian ETF Association, pending further discussion. Current members are BMO ETFs, Claymore Investments Inc., and Horizons Exchange Traded Funds Inc.

The ETFs and corresponding benchmark indexes, TSX ticker symbols and management fee are outlined in the chart below.

Name of ETF Benchmark Index MER TSX Ticker Symbol
Vanguard MSCI Canada Index ETF MSCI Canada Index 0.09% VCE
Vanguard MSCI U.S. Broad Market Index ETF (CAD-hedged), MSCI US Broad Market 100% hedged to CAD Index 0.15% VUS
Vanguard MSCI EAFE Index ETF (CAD-hedged) MSCI EAFE 100% hedged to CAD Index 0.37% VEF
Vanguard MSCI Emerging Markets Index ETF MSCI Emerging Markets Index 0.49% VEE
Vanguard Canadian Aggregate Bond Index ETF Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index 0.20% VAB
Vanguard Canadian Short-Term Bond Index ETF Barclays Capital Global Aggregate Canadian Government/Credit 1-5 year Float Adjusted Bond Index 0.15% VSB staff


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