The nation’s number three ETF provider, Vanguard Investments Canada, has launched four new low-cost actively managed exchange-traded funds. The move is a milestone for the company, in that the four funds are Vanguard Group’s first actively managed ETF’s in Canada.
Trading on the TSX, the launch represents a significant step forward for Vanguard Investments Canada as it seeks to build on its $8 billion in assets.
Managing director of the firm, Atul Tiwari outlined his ambitions for the new funds. “Vanguard has a long track record in offering actively managed strategies and we are pleased to offer that depth of global investment expertise to Canadian investors and advisors,” he said. “As our first actively-managed offering in Canada, today’s announcement represents an important step in our development as we continue to build on our existing suite of ETFs.”
The Vanguard Group is one of the world’s largest active managers with almost US$1 trillion in global actively managed assets. The new funds under the Canadian branch are: Vanguard Global Minimum Volatility ETF; Vanguard Global Value Factor ETF; Vanguard Global Momentum Factor ETF; Vanguard Global Liquidity Factor ETF.
The funds will each have a management fee of 0.35% and will be managed by Vanguard’s Quantitative Equity Group (QEG), which has served as an investment advisor for Vanguard portfolios since 1991.
A growing force in the world of exchange traded funds, these latest products bring the total number of Vanguard ETFs to 27.
Head of product, Vanguard Investments Canada, Tim Huver explained what the launch meant for investors.
“Many investors today are seeking a diverse range of low-cost actively managed global investments,” he said. “These new factor-based ETFs address that need by offering diversification and a disciplined investment process managed by Vanguard’s deeply experienced Quantitative Equity Group.”
ETFs gaining ground on mutual funds in Canada
Vanguard to target FTSE indexes with ETFs