- New ETFs offer investors greater choice with currency hedged all capitalization exposure to developed Asia Pacific and European markets
- Each ETF offers a management fee of 0.20%
TORONTO, Oct. 11, 2016 /CNW/ - Vanguard Investments Canada Inc. today announced the launch of two new low-cost currency hedged exchange-traded funds (ETFs). The Vanguard FTSE Developed Asia Pacific All Cap Index ETF (CAD-hedged) and the Vanguard FTSE Developed Europe All Cap Index ETF (CAD-hedged) begin trading on the TSX today.
The new ETFs provide currency hedged exposure to developed Asia Pacific and European markets and follow all-capitalization benchmarks that include large-, mid-, and small-capitalization stocks.
"Many investors and advisors are looking for global diversification while limiting foreign currency risk. These ETFs, which are also available in an unhedged equivalent, are designed to meet that demand, within an all-cap approach," said Atul Tiwari, managing director for Vanguard Investments Canada Inc. "This diversified exposure, at a low cost, can enhance flexibility in managing currency fluctuations."
Vanguard FTSE Developed Asia Pacific All Cap Index (CAD-hedged) ETF (TSX: VAH) – This ETF seeks to track the performance of a broad Asia Pacific equity index that focuses on developed Asia Pacific markets, which Index is hedged to the Canadian dollar. VAH complements Vanguard FTSE Developed Asia Pacific All Cap Index ETF (VA), which provides non-hedged exposure to developed Asia Pacific markets and features the same management fee of 0.20%.
Vanguard FTSE Developed Europe All Cap Index (CAD-hedged) ETF (TSX: VEH) – This ETF seeks to track the performance of a broad European equity index that focuses on developed European markets, which Index is hedged to the Canadian dollar. VEH complements Vanguard FTSE Developed Europe All Cap Index ETF (VE), which provides non-hedged exposure to developed European markets and features the same management fee of 0.20%.
Vanguard has introduced 13 new ETFs in the past two years, bringing the total number of Vanguard ETFs to 29, with over $9 billion in assets under management. This includes the recent launch of Vanguard's first actively managed ETFs in Canada.
The Vanguard Group, Inc. is one of the world's largest asset managers, with over USD 3.8 trillion in global assets under management.
New Vanguard ETFs:
| ETF |
TSX Symbol |
Management Fee |
| Vanguard FTSE Developed |
VAH |
0.20% |
| Vanguard FTSE Developed |
VEH |
0.20% |
About Vanguard
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages more than CAD 9 billion 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. Vanguard manages more than USD 3.8 trillion in global assets, including over USD 500 billion in global ETF assets. Vanguard has offices in the United States, Canada, Europe, Australia and Asia. The firm offers more than 350 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 monetary figures are as of September 30, 2016, and are expressed in Canadian dollars unless otherwise noted.
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.
The management fee is equal to the fee paid by the Vanguard ETF to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard ETF. For any Vanguard ETF which invests in underlying Vanguard fund(s), there shall be no duplication of management fees chargeable in connection with the Vanguard ETF and its investment in the Vanguard fund(s).
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, 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. Any given ETF may not be a diversified investment. Foreign investing involves additional risks, including currency fluctuations and political uncertainty. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries. Currency hedging transactions incur extra expenses, may not perfectly offset foreign currency exposures, and may eliminate any chance to benefit from favourable fluctuations in those currencies.
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 Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
SOURCE Vanguard Investments Canada Inc.
Matt Gierasimczuk, Vanguard Canada Public Relations, Phone: 416-263-7087, [email protected]
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