One of the nation’s top ETF providers, Vanguard Investments Canada, announced Wednesday that its TSX-listed Vanguard FTSE Developed All Cap ex U.S. Index ETF, and Vanguard FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) products have transitioned to the FTSE Developed All Cap ex US Index and FTSE Developed All Cap ex US Hedged to CAD Index, respectively.
The funds will make the switch and begin tracking their target indexes as of June 1, 2016.
Vanguard has had a period of transition concerning the two ETFs since December 21 last year when it moved to transition benchmarks, FTSE Developed All Cap ex US Transition Index and FTSE Developed All Cap ex US Hedged to CAD Transition Index.
The growth of ETFs in both the US and Canada continues to gather pace, and looks likely to accelerate as CRM2 makes hold north of the border.
Currently, ETFs account for 13.4% of the total mutual fund market in the US and 7.8% in Canada.
The two ETFs will now track broader FTSE benchmarks that include large-, mid-, and small-cap stocks, as well as shares of Canadian companies. Small-cap stocks will represent approximately 10.6% of the funds’ destination benchmark, with a 7.4% exposure to Canada. This strategy is designed to create more complete market-cap weightings, extra diversification and greater risk-management with more companies added to the index.
The changes to the two products received unitholder approval back in September 2015.
Vanguard Investments Canada is an indirect subsidiary of The Vanguard Group, and manages more than $7.5 billion in assets. The Vanguard Group, meanwhile, is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than US $3.5 trillion in global assets, including nearly $500 billion in global ETF assets, making it one of the world’s top providers.
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