Vanguard to launch six ETFs

Vanguard Investments Canada has filed a preliminary prospectus with the Canadian securities regulators for its first suite of Canadian-domiciled ETFs.

“Vanguard sees a tremendous amount of interest in ETFs from financial advisors and portfolio managers who are employing broad-based ETFs to build sound, balanced portfolios for their clients,” said Atul Tiwari, managing director of Vanguard Investments Canada Inc.

“The underlying story, however, is the increasing popularity of the low-cost index approach, which is winning converts among investors who traditionally favoured individual stocks and actively managed mutual funds. Investors are increasingly recognizing the negative impact of high fees on long-term returns. ETFs offer an accessible and flexible way for all constituencies to index.”

The line-up consists of:

• Vanguard MSCI Canada Index ETF, which will seek to track the performance of the MSCI Canada Index;
• Vanguard Canadian Aggregate Bond Index ETF, which will seek to track the performance of the Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index;
• Vanguard Canadian Short-Term Bond Index ETF, which will seek to track the performance of the Barclays Capital Global Aggregate Canadian Government/Credit 1-5 year Float Adjusted Bond Index;
• Vanguard MSCI U.S. Broad Market Index ETF (CAD-hedged), which will seek to track the performance of the MSCI U.S. Broad Market 100% Hedged to CAD Index;
• Vanguard MSCI EAFE Index ETF (CAD-hedged), which will seek to track the performance of the MSCI EAFE 100% Hedged to Canadian Dollars Index; and
• Vanguard MSCI Emerging Markets Index ETF, which will seek to track the performance of the MSCI Emerging Markets Index.

Vanguard Investments Canada will be the manager of the ETFs, and The Vanguard Group, Inc. will provide portfolio management services to the ETFs.

Vanguard already manages more than C$168 billion in ETF assets, listed on exchanges in the U.S., Mexico and Australia.

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