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Vanguard Canada Announces Risk Rating and Product Changes to ETF Lineup

  • These changes follow the previously announced fee reductions for three fixed income ETFs to 0.15%

  • Changes announced to risk ratings for certain Vanguard ETFs

  • Product review included decision to terminate four Vanguard ETFs

TORONTO , June 19, 2020 /CNW/ - Vanguard Investments Canada Inc. today announced changes to several of its ETFs. These changes reflect a thorough product review and evaluation process to better serve investors through Vanguard's suite of investment solutions in Canada .

Fixed Income Fee Reductions

Effective May 19, 2020 Vanguard has reduced the management fees on three fixed income ETFs to 0.15%, the Vanguard Canadian Long-Term Bond Index ETF (VLB), the Vanguard Canadian Government Bond Index ETF (VGV), and the Vanguard Canadian Corporate Bond Index ETF (VCB).

Changes to risk rating for 15 Vanguard ETFs

Effective immediately, the risk rating in respect of 15 ETFs will change as set forth in the table below. These changes are the result of an annual review conducted by Vanguard using the investment risk classification methodology set forth in National Instrument 81-102 – Investment Funds. No material changes have been made to the investment objectives, strategies or management of the Vanguard ETFs.

ETF Name

Ticker

Old Rating

New Rating

Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged)

VBG

Medium

Low

Vanguard FTSE Canadian High Dividend Yield Index ETF

VDY

Low to Medium

Medium

Vanguard FTSE Canada Index ETF

VCE

Low to Medium

Medium

Vanguard FTSE Canada All Cap Index ETF

VCN

Low to Medium

Medium

Vanguard FTSE Global All Cap ex Canada Index ETF

VXC

Low to Medium

Medium

Vanguard FTSE Developed Asia Pacific All Cap Index ETF

VA

Low to Medium

Medium

TSE Developed Asia Pacific All Cap Index ETF (CAD-hedged)

VAH

Low to Medium

Medium

Vanguard FTSE Developed All Cap ex North America Index ETF

VIU

Low to Medium

Medium

Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-hedged)

VI

Low to Medium

Medium

Vanguard U.S. Dividend Appreciation Index ETF

VGG

Low to Medium

Medium

Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged)

VGH

Low to Medium

Medium

Vanguard U.S. Total Market Index ETF

VUN

Low to Medium

Medium

Vanguard U.S. Total Market Index ETF (CAD-hedged)

VUS

Low to Medium

Medium

Vanguard S&P 500 Index ETF

VFV

Low to Medium

Medium

Vanguard S&P 500 Index ETF (CAD-hedged)

VSP

Low to Medium

Medium

Termination of Four Vanguard ETFs

Effective on or about August 25, 2020 (the "Termination Date"), the following four ETFs (the "Terminating ETFs") will be terminated in accordance with the terms of their declaration of trust dated November 4, 2011 , as amended:

Vanguard ETF™

TSX ticker symbol

Vanguard Canadian Short-Term Government Bond Index ETF

VSG

Vanguard FTSE Developed Asia Pacific All Cap Index ETF (CAD-hedged)

VAH

Vanguard FTSE Developed Europe All Cap Index ETF (CAD-hedged)

VEH

Vanguard Global Liquidity Factor ETF

VLQ

Effective August 21, 2020 , Vanguard will no longer accept further subscriptions for units of the Terminating ETFs.

It is anticipated that the units of the Terminating ETFs will be voluntarily delisted from the Toronto Stock Exchange at the close of business on or about August 21 , 2020. 

Prior to the Termination Date, the Manager will sell and convert all of the assets of the Terminating ETFs to cash.  On the Termination Date, the net assets of each of the Terminating ETFs, after paying or providing for all liabilities and obligations of the ETF will be distributed among the unitholders of the ETF on a pro rata basis.

Vanguard decided to terminate the Terminating ETFs following a thorough ETF product review and believes it's in the best interests of Vanguard's investors by focusing on products which allow Vanguard to deliver value to investors through greater economies of scale.

About Vanguard

Canadians own CAD $42 billion in Vanguard assets, including Canadian and U.S.-domiciled ETFs, Canadian institutional products and Canadian mutual funds. Vanguard Investments Canada Inc. manages CAD $25 billion in assets (as of April 30, 2020 ) with 40 Canadian ETFs, four mutual funds, 12 target retirement funds and eight pooled funds currently available. 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 $5.7 trillion (CAD $8 trillion ) in global assets, including over USD $1.1 trillion (CAD $1.5 trillion ) in global ETF assets (as of April 30, 2020 ). Vanguard has offices in the United States , Canada , Mexico , Europe , Australia and Asia . The firm offers 425 funds, including ETFs, to its more than 30 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.

Important information

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.

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.

Please consult your financial and/or tax advisor for financial and/or tax information applicable to your specific situation.

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.

Information, figures and charts are summarized for illustrative purposes only and are subject to change without notice.

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.

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.

SOURCE Vanguard Investments Canada Inc.


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View original content: http://www.newswire.ca/en/releases/archive/June2020/19/c7028.html