Vanguard Investments Canada has filed a final prospectus with the Canadian securities regulators for its first suite of Canadian-domiciled exchange-traded funds. Vanguard expects to list six ETFs on the TSX.
Although the official MERs for the Vanguard ETFs will not be calculated until after their first year-end, Vanguard expects them to be substantially similar to their management fees. The range of Vanguard ETFs will feature an average management fee of 0.24%, with the lowest expected to be 0.09%.
“Research by Vanguard, Morningstar and others has shown time and again that costs are the key determinate of mutual fund or ETF performance,” said Atul Tiwaris, managing director of Vanguard. “By controlling costs, investors are on better footing towards reaching their long-term investment goals because they keep more of their returns.”
The six Vanguard ETFs and corresponding management fees are as follows:
- Vanguard MSCI Canada Index ETF, which will seek to track the performance of the MSCI Canada Index (0.09%);
- Vanguard Canadian Aggregate Bond Index ETF, which will seek to track the performance of the Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index (0.2%);
- 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 (0.15%);
- 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 (0.15%);
- Vanguard MSCI EAFE Index ETF (CAD-hedged), which will seek to track the performance of the MSCI EAFE 100% Hedged to Canadian Dollars Index (0.37%); and
- Vanguard MSCI Emerging Markets Index ETF, which will seek to track the performance of the MSCI Emerging Markets Index (0.49%).