Two Vanguard Developed Markets ETFs Transition To New FTSE Indexes

As a result, Vanguard will offer developed markets ETFs with and without exposure to Canada

TORONTO, Dec. 20, 2015 /CNW/ -- Vanguard Investments Canada Inc., announced that the TSX-listed Vanguard FTSE Developed All Cap ex North America Index ETF (TSX: VDU) and Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-hedged) (TSX: VEF), will begin tracking new FTSE transition indexes as part of a two-phase change to new target indexes. The changes will be effective with the opening of trading on December 21, 2015.

The ETFs will be renamed, but their ticker symbols and management fees will remain unchanged. The following table summarizes the changes.

Vanguard
ETF®

New ETF
name

TSX ticker

Management fee

Former
FTSE benchmark

Transition benchmark

Target benchmark

Vanguard FTSE Developed ex North America Index ETF

Vanguard FTSE

Developed All Cap ex

U.S. Index ETF

VDU

0.20%

FTSE Developed

ex North America

Index

FTSE Developed All

Cap ex US Transition Index

FTSE Developed All

Cap ex US Index

Vanguard FTSE

Developed ex North

America Index ETF

(CAD-hedged)

Vanguard FTSE

Developed All Cap ex

U.S. Index ETF (CAD hedged)

VEF

0.20%

FTSE Developed

ex North America

Hedged

CAD Index

FTSE Developed All

Cap ex US Hedged to

CAD Transition Index

FTSE Developed All

Cap ex US Hedged to

CAD Index

The changes to VDU and VEF follow closely index changes to the U.S.-listed Vanguard FTSE Developed Markets ETF (NYSE: VEA) in which they invest.

In the first phase, the ETFs will track their transition indexes, interim indexes that will gradually increase exposure to small-capitalization stocks and Canadian securities, while proportionately reducing the weightings of other stocks.

Vanguard will manage the transition over the course of approximately six months to minimize trading costs. To provide transparency to shareholders during the transition, FTSE will supply monthly updates of the transition index's composition at ftse.com/vanguard.

At the conclusion of the transition, the ETFs will begin tracking their destination target indexes, broader FTSE benchmarks that includes large-, mid-, and small-cap stocks, as well as shares of Canadian companies. Canada will represent approximately 7.4% of the fund's destination benchmark. Adding small-cap exposure to the funds moves investors closer to market-cap weightings and offers additional diversification.

These transitions come after Vanguard announced the launch earlier this month of two TSX-listed developed market ETFs that exclude both Canada and the U.S.—Vanguard FTSE Developed All Cap ex North America Index ETF (TSX: VIU) and Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-hedged) (TSX: VI).

About Vanguard
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc., and manages more than $6 billion (CAD) in assets. The Vanguard Group, Inc., is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. As of November 30, 2015, Vanguard managed $3.4 trillion (USD) in global assets, including nearly $500 billion (USD) in global ETF assets. Vanguard has offices in the United States, Canada, Europe, Australia and Asia. The firm offers 300 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.

All asset figures are as of November 30, 2015, unless otherwise noted.
Source: Vanguard

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.

London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc. ("FTSE TMX"). All rights reserved. "FTSE®", "Russell®", "MTS®", "FTSE TMX®" and "FTSE Russell" and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Developed ex North America Index, FTSE Developed All Cap ex US Transition Index, FTSE Developed All Cap ex US Index, FTSE Developed ex North America Hedged CAD Index, FTSE Developed All Cap ex US Hedged to CAD Transition Index, and FTSE Developed All Cap ex US Hedged to CAD Index, or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

All investments, including those that seek to track indexes, 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. While ETFs are designed to be as diversified as the original indexes they seek to track and can provide greater diversification than an individual investor may achieve independently, any given ETF may not be a diversified investment.

SOURCE Vanguard Investments Canada Inc.

For further information: For more information, contact Vanguard PR at 610-669-5002, www.vanguard.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890