Vanguard Investments launches two Canadian bond index ETFs

By Toni Weeks

San Diego, Aug. 23 - Vanguard Investments Canada Inc. said it filed a preliminary prospectus with the Canadian securities regulators for its first suite of Canadian-domiciled exchange-traded funds, according to a press release.

The two new ETFs include the following:

• Vanguard Canadian Aggregate Bond Index ETF, which seeks to track the performance of the Barclays Capital Global Aggregate Canadian Float Adjusted Bond index; and

• Vanguard Canadian Short-Term Bond Index ETF, which seeks to track the performance of the Barclays Capital Global Aggregate Canadian Government/Credit 1-5-year Float Adjusted Bond index.

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

The low-cost index approach associated with ETFs is winning converts among investors, commented Atul Tiwari, managing director of Vanguard Investments Canada in the release.

"Investors are increasingly recognizing the negative impact of high fees on long-term returns," he said in the release. "ETFs offer an accessible and flexible way for all constituencies to index."

Vanguard also said that it will offer several other exchange-traded funds, including the Vanguard MSCI Canada Index ETF, the Vanguard MSCI U.S. Broad Market Index ETF, the Vanguard MSCI EAFE Index ETF and the Vanguard MSCI Emerging Markets Index ETF.

Vanguard Investments, located in Toronto, is a wholly owned subsidiary of the Vanguard Group, Inc., an investment management company and provider of company-sponsored retirement plan services.

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