Vanguard Investments Canada Inc. has introduced five new equity Canada-domiciled exchange-traded funds (ETFs) on the Toronto Stock Exchange—and it has brought down the fee for two of its existing ETFs.
Vanguard, which entered the Canadian market in December 2011 and saw its Canadian ETFs amount to more than $1 billion in assets earlier this year, now offers 16 ETFs.
“Vanguard ETFs are distinguished in the market by low-cost, broadly diversified portfolios,” says Atul Tiwari, principal and managing director of Vanguard Investments Canada. “Our new ETFs follow this same principle, enabling financial advisors and investors to better construct broadly diversified portfolios at a low cost.”
The newly introduced products are as follows:
- Vanguard FTSE Canada All Cap Index ETF, with an annual management fee of 0.12%;
- Vanguard FTSE Developed ex North America Index ETF, with a fee of 0.28%;
- Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged), with a fee of 0.28%;
- Vanguard U.S. Dividend Appreciation Index ETF, with a fee of 0.28%; and
- Vanguard U.S. Total Market Index ETF, with a fee of 0.15%.
Vanguard has also reduced management fees for two existing ETFs: Vanguard FTSE Emerging Markets Index ETF (VEE) and Vanguard FTSE Developed ex North America Index ETF (CAD-hedged) (VEF). The management fee of the VEE fell to 0.33% from 0.49%, and the fee for the VEF has been brought down to 0.28% from 0.37%.
With the addition of the five new ETFs, Vanguard’s lineup of 16 ETFs will feature an industry-low average management fee of 0.21%, according to the firm.
Additionally, Vanguard expects to launch two new fixed income Canada-domiciled ETFs in the near future: Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged), with a fee of 0.25%, and Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged), with a fee of 0.35%.
Related articles: