Management fee on Vanguard Canadian Aggregate Bond Index ETF (VAB) reduced from 0.12% to 0.08%
TORONTO, Feb. 13, 2018 /CNW/ - Vanguard Investments Canada
Inc. announced today that it has lowered the management fee on one of its largest fixed income ETFs, by four basis points from
0.12% to 0.08%.
"Vanguard's mission is to give investors the best chance for investment success and part of that commitment is to lower the
cost of investing for all Canadians," said Atul Tiwari, managing director for Vanguard Investments
Canada Inc. "As we have recently seen, fixed income ETFs can play a key role as a stabilizing force in a portfolio, particularly
during times of stock market volatility, and we are pleased investors will receive a fee reduction in one of our largest
ETFs."
Mr.Tiwari added, "As a global low-cost leader, this continues our trend of delivering high-quality and enduring cost-effective
investing solutions for Canadian investors and financial advisors, following fee reductions in 2013, 2014 and 2015. Canadians are realizing that investing
fees matter more than ever, particularly in the bond markets, where yields are below their historical averages and costs erode a
larger share of returns than they have in the past."
Effective on February 13, 2018 the management fee will be reduced as follows:
Vanguard Canadian Aggregate Bond Index ETF (TSX:VAB) – The Vanguard Canadian Aggregate Bond Index ETF (TSX: VAB) seeks
to track the performance of a broad Canadian bond index, currently the Bloomberg Barclays Global Aggregate Canadian Float
Adjusted Bond Index. It invests primarily in public, investment-grade fixed income securities issued in Canada.
Vanguard offers 36 ETFs in Canada including nine fixed income ETFs with over $14 billion in assets. Canadians hold over $26 billion in Vanguard ETFs
(including both Canadian and U.S. ETFs).
Leading the way on low fees: The "Vanguard Effect"
Since 2012, the asset-weighted management expense ratios (MERs) for Vanguard ETFs have declined by almost half, from
0.27%1 to 0.15%2, compared to the overall ETF asset-weighted industry average of 0.37%3.
Additionally, industry investment fees have come down significantly over the past several years, helping Canadians keep more
of their investment dollars, a phenomenon that has taken place in the United States, the
United Kingdom and Australia following Vanguard's entry into
each market. View additional information on the "Vanguard Effect" here.
About Vanguard
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages over
CAD 14 billion in assets with 36 Canadian ETFs (as of February 1,
2018). The Vanguard Group, Inc. is one of the world's largest investment management companies and a leading provider of
company-sponsored retirement plan services. Vanguard manages USD 4.9 trillion (CAD $6 trillion) in global assets, including over USD 900 billion (CAD $1.1 trillion) in global ETF assets (as of December 31, 2017). Vanguard has
offices in the United States, Canada, Europe, Australia and Asia. The firm
offers 385 funds, including ETFs, to its more than 20 million investors worldwide.
Vanguard operates under a unique operating structure. Unlike firms that are publicly held or owned by a small group of
individuals, The Vanguard Group, Inc. is owned by Vanguard's U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by
Vanguard clients. This unique mutual structure aligns Vanguard interests with those of its investors and drives the culture,
philosophy, and policies throughout the Vanguard organization worldwide. As a result, Canadian investors benefit from Vanguard's
stability and experience, low-cost investing, and client focus. For more information, please visit vanguardcanada.ca.
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1
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As of December 31, 2012 (Data from Morningstar, Bloomberg and Strategic
Insight)
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2
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As of December 31, 2016 (Data from Morningstar, Bloomberg and Strategic
Insight)
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3
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As of December 31, 2016 (Data from Morningstar, Bloomberg and Strategic
Insight)
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Important information
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Commissions, management fees, and expenses all may be associated with
investments in a Vanguard ETF®. Investment objectives, risks, fees, expenses, and other important information are
contained in the prospectus; please read it before investing. ETFs are not guaranteed, their values change frequently,
and past performance may not be repeated. Vanguard ETFs® are managed by Vanguard Investments Canada Inc., an indirect
wholly-owned subsidiary of The Vanguard Group, Inc., and are available across Canada through registered
dealers.
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This material is for informational purposes only. This material is not
intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer
or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and
opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances
of a specific investor and, thus, should not be used as the basis of any specific investment recommendation.
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Please consult your financial and/or tax advisor for financial and/or tax
information applicable to your specific situation.
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All investments are subject to risk, including the possible loss of
principal. Diversification does not ensure a profit or protect against a loss in a declining market.
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Information, figures and charts are summarized for illustrative purposes
only and are subject to change without notice.
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This material does not constitute an offer or solicitation and may not be
treated as an offer or solicitation in any jurisdiction where such an offer or solicitation is against the law, or to
anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is
not qualified to do so.
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In this material, references to "Vanguard" are provided for convenience
only and may refer to, where applicable, only The Vanguard Group, Inc., and/or may include its affiliates, including
Vanguard Investments Canada Inc
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.BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P.
BARCLAYS® is a trademark and service mark of Barclays Bank Plc, used under license. Bloomberg Finance L.P. and its
affiliates, including Bloomberg Index Services Limited ("BISL") (collectively, "Bloomberg"), or Bloomberg's licensors own
all proprietary rights in the Bloomberg Barclays Indices.
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The products are not sponsored, endorsed, issued, sold or promoted by
.Bloomberg or Barclays. Bloomberg and Barclays make no representation or warranty, express or implied, to the owners or
purchasers of the products or any member of the public regarding the advisability of investing in securities generally or
in the products particularly or the ability of the Bloomberg Barclays Indices to track general bond market performance.
Neither Bloomberg nor Barclays has passed on the legality or suitability of the products with respect to any person or
entity. Bloomberg's only relationship to Vanguard and the products are the licensing of the Bloomberg Barclays Indices
which are determined, composed and calculated by BISL without regard to Vanguard or the Vanguard Funds and ETFs or any
owners or purchasers of the products. Bloomberg has no obligation to take the needs of the products or the owners of the
products into consideration in determining, composing or calculating the Bloomberg Barclays Indices. Neither Bloomberg
nor Barclays is responsible for and has not participated in the determination of the timing of, prices at, or quantities
of the products to be issued. Neither Bloomberg nor Barclays has any obligation or liability in connection with the
administration, marketing or trading of the products.
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SOURCE Vanguard Investments Canada Inc.
View original content: http://www.newswire.ca/en/releases/archive/February2018/13/c3684.html