Vanguard Lowers Fee In Canada

Vanguard Canada lowered it’s already low fees on it’s offerings of ETF products in Canada. This is good news for investors, as I have previously discussed – fees are the (often silent) enemy to investors.

Vanguard ETF™ TSX ticker symbol New annual management fee1(% of NAV) Old annual management fee (% of NAV)
Vanguard FTSE Canada Index ETF VCE 0.05% 0.09%
Vanguard FTSE Canada All Cap Index ETF VCN 0.05% 0.12%
 Vanguard FTSE Canadian High Dividend Yield Index ETF  VDY  0.20%  0.30%
 Vanguard S&P 500 Index ETF  VFV  0.08%2 0.15%2
Vanguard S&P 500 Index ETF (CAD-hedged)  VSP  0.08%2  0.15%2
 Vanguard FTSE Developed ex North America Index ETF  VDU  0.20%2 0.28%2 
 Vanguard FTSE Developed ex North America Index ETF  (CAD-hedged)  VEF  0.20%2  0.28%2
 Vanguard FTSE Emerging Markets Index ETF  VEE  0.23%2  0.33%2
 Vanguard Canadian Aggregate Bond Index ETF  VAB  0.12%  0.20%
 Vanguard Canadian Short-Term Bond Index ETF  VSB  0.10%  0.15%
Vanguard Canadian Short-Term Corporate Bond Index ETF   VSC  0.10%  0.15%


If you have not yet read my post, I Want To Talk About Fees, I would suggest you do that now.  In regards to low-cost investing, there has never been a better time for Canadian investors.  

A bit of fine-print on the above table:

1The table reflects management fees payable by the Vanguard ETFs to Vanguard Investments Canada Inc. effective as of October 7, 2014, as reported in the amendment to the prospectus of the Vanguard ETFs. New management expense ratios will be calculated at the end of the year.  Vanguard expects that the MERs of the Vanguard ETFs will be substantially similar to their management fees, as it is expected that the only additional fees and expenses that will be borne by the Vanguard ETFs and included in the MER calculation will be any goods and services and/or harmonized sales tax payable by the Vanguard ETFs. Currently, Vanguard Investments Canada Inc. has agreed to reimburse the Vanguard ETFs for the ongoing operating expenses of the Vanguard ETFs’ independent review committee. It may discontinue this practice at any time. MERs for ETFs are generally higher than management fees for ETFs.

2This Vanguard ETF invests primarily in one or more U.S.-domiciled Vanguard funds. To ensure that there is no duplication of management fees chargeable in connection with the Vanguard ETF™ and its investment in the Vanguard fund(s), the management fee payable by the Vanguard ETF to Vanguard Investments Canada Inc. set out above is reduced by the aggregate of the management fee payable by the Vanguard fund(s) to an affiliate of Vanguard Investments Canada Inc. and certain expenses of the Vanguard fund(s) that are paid directly by the Vanguard fund(s) (together, the “Vanguard fund total expense ratio”). The Vanguard fund(s) total expense ratio is embedded in the market value of the Vanguard fund(s) shares in which the Vanguard ETF invests. 

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