Vanguard Announces Revised Annual Management Report of Fund Performance for Certain Vanguard ETFs

TORONTO, May 5, 2017 /CNW/ - Vanguard Investments Canada Inc. today announced a revision to the annual Management Report of Fund Performance (MRFP) for certain Vanguard ETFs, reflecting a reduction to the previously reported management expense ratio (MER) for each fund.   

A list of each Vanguard ETF and the revised MER for the year ended December 31, 2016, is below.

Vanguard ETF®

TSX Ticker
Symbol

Previously
reported MER

Revised MER

Vanguard FTSE Emerging Markets All Cap Index ETF

VEE

0.26

 

0.24

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

VUS

0.17

 

0.16

 

Vanguard FTSE Developed All Cap Ex U.S. Index ETF (CAD-hedged)

VEF

0.22

 

0.21

 

Vanguard FTSE Developed All Cap Ex U.S. Index ETF

VDU

0.22

0.21

 

Vanguard U.S. Dividend Appreciation Index ETF

VGG

0.31

 

0.30

 

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

VGH

0.31

 

0.30

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

VBU

0.23

 

0.22

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

VBG

0.39

 

0.37

Vanguard FTSE Global All Cap ex Canada Index ETF

VXC

0.28

 

0.27

Vanguard FTSE Developed Europe All Cap Index ETF

VE

0.23

 

0.22

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

VSP

0.09

 

0.08

Vanguard S&P 500 Index ETF

VFV

0.09

 

0.08

Vanguard FTSE Developed Asia Pacific All Cap Index ETF

 

VA

0.23

0.22

 

The adjustments resulted from a miscalculation of the Harmonized Sales Tax (HST) charged to the funds in connection with the management fee of the underlying fund in which the funds primarily invest. The adjustment only applies to the calculation of the MER and not the actual management fee and applicable HST charged to the funds during the year, which was correct. 

To learn more about the TSX-listed Vanguard ETFs, please visit www.vanguardcanada.ca

About Vanguard

Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages more than CAD 11 billion in assets (as of May 1, 2017). 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 4.2 trillion in global assets (as of May 1, 2017) with over USD 700B in ETF assets. Vanguard has offices in the United States, Canada, Europe, Australia and Asia. The firm offers more than 360 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.

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

The management expense ratio (MER) is the MER as of December 31, 2016, including waivers and absorptions and is expressed as an annualized percentage of the daily average net asset value. The MER without any absorptions or waivers would have been 0.16% for VUS, 0.08% for VFV, 0.08% for VSP, 0.30% for VGG, 0.30% for VGH, 0.27% for VXC, 0.21% for VDU, 0.21% for VEF, 0.23% for VE, 0.24% for VA, 0.24% for VEE, 0.22% for VBU, and 0.38% for VBG. Vanguard Investments Canada Inc. expects to continue absorbing or waiving certain fees indefinitely but may, in its discretion, discontinue this practice at any time.

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.

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.

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 their 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 Indices or the fitness or suitability of the Indices for any particular purpose to which they might be put.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Vanguard. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); S&P® and S&P 500® are trademarks of S&P; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Vanguard. Vanguard product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the index.

SOURCE Vanguard Investments Canada Inc.

For further information: Matt Gierasimczuk, Vanguard Canada Public Relations, Phone: 416-263-7087, matthew_gierasimczuk@vanguard.com


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