Management fee on Vanguard FTSE Global All Cap ex Canada Index ETF (VXC) reduced from 0.25% to 0.20%
TORONTO, Nov. 4, 2019 /CNW/ - Vanguard Investments Canada Inc. announced today that it has lowered the management fee on one of its largest equity ETFs, by five basis points from 0.25% to 0.20%.
"Vanguard has a long history of lowering investing costs in the areas in which we operate and we are pleased to reduce the fees in one of our largest equity ETFs," said Kathy Bock, Head of Vanguard Investments Canada Inc. "One of the biggest myths with investing is that high costs lead to better returns. In fact, it's the opposite. Every dollar paid in extra fees is a dollar taken away from investor returns and this compounds over time."
Vanguard has also reduced the total cost of ownership with the Vanguard FTSE Global All Cap ex Canada Index ETF by simplifying the structure to remove a second layer of taxation with a lower withholding rate.
Effective on November 1, 2019 the management fee was reduced as follows:
TSX ticker symbol
New annual management fee
Old annual management fee
Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC) – The Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC) seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad global equity index that focuses on developed and emerging markets, excluding Canada. Currently, this ETF seeks to track the FTSE Global All Cap ex Canada China A Inclusion Index (or any successor thereto). It invests directly or indirectly primarily in large-, mid-, and small capitalization stocks of companies located in developed and emerging markets, excluding Canada.
Low Fees and the "Vanguard Effect" in Canada
Since 2012, the asset-weighted management expense ratios (MERs) for Vanguard ETFs have declined by almost half, from 0.27%1 to 0.14%2, compared to the overall ETF asset-weighted industry average of 0.31%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 and has been called the "Vanguard Effect".
Canadians own CAD $39 billion in Vanguard assets, including Canadian and U.S.-domiciled ETFs, Canadian institutional products and Canadian mutual funds. Vanguard Investments Canada Inc. manages CAD $23 billion in assets (as of September 30, 2019) with 39 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 $7.5 trillion) in global assets, including over USD $1.1 trillion (CAD $1.4 trillion) in global ETF assets (as of September 30, 2019). Vanguard has offices in the United States, Canada, Mexico, Europe, Australia and Asia. The firm offers 421 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.
1As of December 31, 2012 (Data from Morningstar, Bloomberg and Strategic Insight)
2As of December 31, 2018 (Data from Morningstar, Bloomberg and Strategic Insight)
3As of December 31, 2018 (Data from Morningstar, Bloomberg and Strategic Insight)
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.
For further information: Matt Gierasimczuk, Vanguard Canada Public Relations, Phone: 416-263-7087, [email protected]