Vanguard Canada unveils two new asset allocation ETFs

Feb 6th, 2019 | By | Category: Alternatives / Multi-Asset

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Vanguard Investments Canada has listed two new ETFs on Toronto Stock Exchange that are part of the firm’s asset allocation suite of funds.

Vanguard Canada asset allocation ETFs

To celebrate the new listings, Vanguard Canada participated in a market-opening ceremony at the Toronto Stock Exchange on 5 February 2019.

Each ETF in the suite provides access to a globally diversified portfolio composed of Vanguard’s own passive ETFs.

While the ETFs are technically actively managed, each fund strives to maintain a long-term strategic asset allocation in accordance with its objective.

However, the funds may be rebalanced at the discretion of the manager.

The Vanguard Conservative Income ETF Portfolio (VCIP CN) seeks to provide a combination of income and some long-term capital growth through a strategic allocation of 20% equities and 80% fixed income.

As of the end of December 2018, the portfolio is composed of seven Vanguard ETFs providing exposure to the following segments: Canadian aggregate bonds (47.0%), global ex-US aggregate bonds (18.1%), US aggregate bonds (14.9%), US equities (7.8%), Canadian equities (6.0%), developed ex-North America equities (4.7%), and emerging market equities (1.5%).

The firm’s second launch is the Vanguard All-Equity ETF Portfolio (VEQT CN) which seeks to provide long-term capital growth through a strategic allocation of 100% equities.

The portfolio is composed of just four ETFs providing exposure to the following equity segments: US (38.9%), Canada (30.0%), developed ex-North America (23.6%), and emerging markets (7.5%).

The new launches bring the total number of asset allocation ETFs offered by Vanguard Canada to five. The other ETFs in the range include the Vanguard Conservative ETF Portfolio (VCNS CN), which maintains a long-term strategic asset allocation of 40% equities and 60% fixed income; the Vanguard Balanced ETF Portfolio (VBAL CN), (60% equities, 40% fixed income); and the Vanguard Growth ETF Portfolio (VGRO CN), (80% equities, 20% fixed income).

Each fund in the suite comes with management fees of 0.22%.

“Canadian investors have a preference for enduring, low-cost, and disciplined investment solutions, and this has been a pillar of Vanguard’s philosophy for over 40 years,” said Kathy Bock, Managing Director, Vanguard Investments Canada. “Canadians have invested over $1 billion in our asset allocation ETFs since we introduced them last year. We are pleased to provide added choice to investors with two new ETFs featuring well-diversified and global portfolios, which are rebalanced regularly.”

“Canadian investors have embraced our ‘all-in-one’ asset allocation ETFs based on their sound portfolio construction, low-cost and simplicity,” added Tim Huver, Head of Product, Vanguard Investments Canada. “These ETFs have been among our most popular over the past year and we are committed to giving Canadians greater flexibility by offering two new investing options on both sides of the risk profile spectrum.”

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