Vanguard introduces four Canadian fixed income ETFs

Feb 9th, 2017 | By | Category: Fixed Income

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Vanguard Investments Canada has listed four new fixed income exchange-traded funds on Toronto Stock Exchange, offering investors low cost access to various duration exposures for Canadian government or corporate bonds.

Vanguard introduces four Canadian fixed income ETFs

Atul Tiwari, Managing Director for Vanguard Investments Canada.

“In an uncertain market, investors and advisors are looking for high-quality fixed income solutions to build broadly diversified portfolios, at a low cost,” said Atul Tiwari, Managing Director for Vanguard Investments Canada. “As a global fixed income leader, we are pleased to meet that need and build on our existing line-up of bond ETFs, which are among the lowest cost in their respective categories.”

Tim Huver, Head of Product, Vanguard Investments Canada, added: “Bond ETFs provide a low cost, liquid and transparent alternative to holding bonds directly. These ETFs provide the flexibility to position portfolios along the yield curve and take advantage of targeted exposure to corporate and government bonds.”

The Vanguard Canadian Government Bond Index ETF (VGV) tracks the Bloomberg Barclays Global Aggregate Canadian Government Float Adjusted Bond Index, a broad Canadian government bond index composed of investment grade fixed rate securities with maturities greater than one year.

The ETF has management fees of 0.25%.

The Vanguard Canadian Corporate Bond Index ETF (VCB) tracks the Bloomberg Barclays Global Aggregate Canadian Credit Float Adjusted Bond Index, an index of public, investment-grade non-government fixed income securities listed in Canada with maturities greater than one year.

Management fees are 0.23%.

The Vanguard Canadian Short-Term Government Bond Index ETF (VSG) tracks the Bloomberg Barclays Global Aggregate Canadian Government 1-5 Year Float Adjusted Bond Index, a market capitalization-weighted index that represents a wide spectrum of public, investment-grade government fixed income securities issued in Canada with maturities between one and five years.
Management fees are 0.18%.

The Vanguard Canadian Long-Term Bond Index ETF (VLB) tracks the Bloomberg Barclays Global Aggregate Canadian 10+ Year Float Adjusted Bond Index, a market capitalization-weighted index that represents a wide spectrum of public, investment-grade fixed income securities issued in Canada – including government, government-related and corporate securities – all with maturities greater than 10 years.
Management fees are 0.17%.

Vanguard now offers nine total fixed income ETFs in Canada including domestic, US and global bond exposures. The other ETFs in the firm’s Canada-listed fixed income suite include:

Vanguard Canadian Aggregate Bond Index ETF (VAB). Fees: 0.12%
Vanguard Canadian Short-Term Bond Index ETF (VSB). Fees: 0.10%
Vanguard Canadian Short-Term Corporate Bond Index ETF (VSC). Fees: 0.10%
Vanguard Global ex-US Aggregate Bond Index ETF – CAD-hedged (VBG). Fees: 0.35%
Vanguard US Aggregate Bond Index ETF – CAD-hedged (VBU). Fees: 0.22%

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