Vanguard Files Preliminary Prospectus for Six Exchange-Traded Funds (ETFs)

Vanguard Investments Canada Inc. has filed a preliminary prospectus with the Canadian securities regulators for its first suite of Canadian-domiciled exchange-traded funds (ETFs). The line-up of six funds includes equity and bond ETFs:

“Vanguard sees a tremendous amount of interest in ETFs from financial advisors and portfolio managers who are employing broad-based ETFs to build sound, balanced portfolios for their clients”

  • Vanguard MSCI Canada Index ETF, which will seek to track the performance of the MSCI Canada Index;
  • Vanguard Canadian Aggregate Bond Index ETF, which will seek to track the performance of the Barclays Capital Global Aggregate Canadian Float Adjusted Bond Index;
  • Vanguard Canadian Short-Term Bond Index ETF, which will seek to track the performance of the Barclays Capital Global Aggregate Canadian Government/Credit 1-5 year Float Adjusted Bond Index;
  • Vanguard MSCI U.S. Broad Market Index ETF (CAD-hedged), which will seek to track the performance of the MSCI U.S. Broad Market 100% Hedged to CAD Index;
  • Vanguard MSCI EAFE Index ETF (CAD-hedged), which will seek to track the performance of the MSCI EAFE 100% Hedged to Canadian Dollars Index; and
  • Vanguard MSCI Emerging Markets Index ETF, which will seek to track the performance of the MSCI Emerging Markets Index.

Vanguard Investments Canada Inc. will be the manager of the ETFs, and The Vanguard Group, Inc. will provide portfolio management services to the ETFs.

“Vanguard sees a tremendous amount of interest in ETFs from financial advisors and portfolio managers who are employing broad-based ETFs to build sound, balanced portfolios for their clients,” said Atul Tiwari, Managing Director of Vanguard Investments Canada Inc. “The underlying story, however, is the increasing popularity of the low-cost index approach, which is winning converts among investors who traditionally favoured individual stocks and actively managed mutual funds. Investors are increasingly recognizing the negative impact of high fees on long-term returns. ETFs offer an accessible and flexible way for all constituencies to index.”

Vanguard is a global leader in ETFs with more than CAD $168 billion in ETF assets, and has ETFs listed on exchanges in the U.S., Mexico and Australia. In the U.S., Vanguard led the industry with CAD $34 billion in ETF cash flow in 2010, and its momentum continues in 2011 with CAD $21 billion in cash flow through July (source: Bloomberg and Vanguard).

A preliminary prospectus containing important information relating to securities of the new Vanguard Canada ETFs has been filed with the securities commissions or similar authorities in all provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be downloaded at www.sedar.com. There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

About Vanguard

Vanguard Investments Canada Inc., located in Toronto, is a wholly-owned subsidiary of The Vanguard Group, Inc. Vanguard is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than CAD $1.77 trillion in global assets. Vanguard offers more than 170 funds to U.S. investors and more than 70 additional funds in non-U.S. markets.

All asset figures are as of July 31, 2011, unless otherwise noted.

The Vanguard ETFs are not sponsored, endorsed, sold or promoted by Barclays Capital. Barclays Capital does not make any representation regarding the advisability of Vanguard ETFs or the advisability of investing in securities generally. Barclays Capital’s only relationship with Vanguard is the licensing of the Index which is determined, composed and calculated by Barclays Capital without regard to Vanguard or the Vanguard ETFs. Barclays Capital has no obligation to take the needs of Vanguard or the owners of the Vanguard ETFs into consideration in determining, composing or calculating the Index. Barclays Capital has no obligation or liability in connection with administration, marketing or trading of the Vanguard ETFs.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. The prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds.

Leave a Reply

Your email address will not be published. Required fields are marked *