Benefit from the
Vanguard difference
Contents
2 About Vanguard
3 An enduring investment philosophy 4 A different way to invest
6 An indexing leader
7 A trusted partner for advisors in Canada
8 Contact us
“ We believe our unique offer of low costs, client focus and enduring
invest ment solutions will resonate with
Canadian investors.”
— F. William McNabb III Chairman and CEO
The Vanguard Group, Inc.
About Vanguard
Since establishing the first index mutual fund for individual investors in 1976, The Vanguard Group, Inc.
(Vanguard) has become one of the world’s largest investment management companies.
Today our clients entrust us with more than $3.1 trillion in assets under management. Our growing asset base also includes more than $445 billion in exchange- traded funds.
Over the past three decades, Vanguard has expanded its offerings to partner with financial advisors and institutional investors in key global markets within Europe/United Kingdom, Asia and Australia.
We attribute our growth to years of meeting our clients’ needs through our unique offer of low costs, client focus and enduring investment solutions.
At Vanguard, we also understand that—in the financial business—
reputation is everything. Over the years, we’ve built a sterling reputation for ethics and integrity and looking out for the best interests of our clients.
We look forward to continuing this way of doing business as we partner with investment advisors in Canada.
With investors increasingly focused on costs and quality, we believe the time is right to provide your clients with access to high-value investments that can help them meet their investment goals and help you grow your business.
All figures are as of December 31, 2014.
Key fact
Vanguard has more than
$3.1 trillion in assets under
management worldwide.
An enduring
investment philosophy
Since Vanguard’s beginning, we have been committed to four principles that guide our fund management and investment programs. We believe that investors should:
Create clear, appropriate investment goals.
Investors should set measurable and attainable investment goals and develop plans for reaching those goals. Investors with multiple goals (e.g., retirement planning and college savings) should have a separate plan for each. Finally, they should evaluate their plans on a regular, ongoing basis.
Develop a suitable asset allocation using broadly diversified funds.
A successful investment strategy starts with an asset allocation suitable for its objective. Investors should establish an asset allocation using reasonable expectations for risk and returns. The use of diversified investments helps to ensure against exposure to unnecessary risks.
Minimize cost.
Every dollar that investors pay for management fees or trading commissions is a dollar less of potential return. Research also suggests that lower-cost investments have tended to outperform higher-cost alternatives.
Investors can’t control the markets, but they can control the effects of costs.
1Maintain perspective and long-term discipline.
Investing evokes emotion that can disrupt the plans of even the most sophisticated investors.
Some investors may make rash decisions based on market volatility. Discipline and perspective can counter that emotion if the investor adopts a systematic approach to investing that applies the principles of asset allocation and diversification—and then sticks to it.
Key fact
Vanguard’s approach to investing doesn’t change with market fads.
1 Source: “Vanguard’s Principles for Investing Success,” July 2014, p17-23.
https://www.vanguardcanada.ca/documents/investment-principles-wp.pdf
A different way to invest
Vanguard Investments Canada Inc.
is a subsidiary of Vanguard. As such, Canadian investors benefit from Vanguard being one of the world’s largest investment management companies and a very different kind of investment firm. The distinction stems from Vanguard’s unique ownership structure.
Rather than being publicly traded or owned by a small group of individuals, The Vanguard Group, Inc. is owned by its U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by their investors.
This unique mutual structure aligns our interests with those of our investors and drives the culture, philosophy and policies throughout the Vanguard organization
worldwide. As a result, Canadian investors benefit from Vanguard’s low costs, client focus, and stability and experience.
2 Management fees are averages: Investors may not experience similar savings by investing in Vanguard ETFs.
Actual management fees for Vanguard ETFs may be higher or lower than this average figure.
Key fact
The average management
fee of our Canada-domiciled
ETFs is 0.22%.
2The Vanguard difference
Low costs
Investors can’t control the markets, but they can control the costs of investing. Providing low-cost investments isn’t a pricing strategy for us. It’s how we do business. We can keep costs low because of our unique ownership structure in the United States, which allows us to return profits to investors through lower costs. Vanguard’s scale also helps to keep costs low. As our assets under management increase globally, we can reduce expense ratios for the investors in our funds.
Client focus
The ownership structure of The Vanguard Group, Inc. aligns our interests with those of our clients.
Because Vanguard is not publicly traded, we can extend the benefits of that structure to our clients in Canada.
From rigorous risk management to transparent pricing to Plain Talk
™communications, we put our clients’
interests first. Everything we do at Vanguard is designed to give our clients the best chance for investment success.
Stability and experience
In Canada, Vanguard leverages the scale, experience and resources of our established global business.
Vanguard’s ownership structure
means that our clients don’t have
to worry that we’ll be acquired. The
company they invest with today will
continue to serve them in the future.
An indexing leader
Indexing is a powerful strategy for capturing market returns through broad market exposure.
An indexed approach with a long- term investment horizon can limit turnover, minimizing transaction expenses that reduce investment returns.
When you invest with Vanguard, you have almost 40 years of index investing experience behind you.
Vanguard launched the first equity index mutual fund for individual investors in the United States in 1976. Funds based on bond and international indexes followed in 1986 and 1990. We’ve since applied our index management expertise to exchange-traded funds.
As we’ve developed proprietary software and sophisticated techniques for portfolio
construction, risk management and trading, we’ve also grown in size, scale and experience.
Investors benefit through tight, low-cost benchmark tracking.
Of course, an index investment is only as good as the benchmark it seeks to track. We select only market-capitalization benchmarks, which objectively reflect broad markets or market segments and thus minimize investment costs. Many index providers use benchmark construction best practices that Vanguard has promoted for years – an industry endorsement of our leadership.
Key fact
Vanguard pioneered
indexing investing for
retail investors almost
40 years ago.
A trusted partner for advisors in Canada
Vanguard has become a key partner to financial advisors because we understand your business.
Your success depends on the confidence of your clients. By delivering low-cost, high-quality investments and research-driven insights, Vanguard helps you earn—
and keep—your clients’ trust.
We launched operations in Canada in 2011 in response to the changing needs of the Canadian advisor market. Advisors are increasingly moving from a transaction-based approach to a fee-based model.
We have partnered with advisors making this transition in the United States, Australia and the United Kingdom, and we feel we have much to contribute to advisors adapting to the new model, including:
Low-cost ETFs
Vanguard’s indexing expertise is available through Canada- domiciled ETFs that seek to track the performance of market- capitalization-weighted indexes
representing Canadian and U.S. stocks, international stocks, Canadian real estate and Canadian bonds, making it even easier to build low-cost, well diversified portfolios. The Canada-domiciled Vanguard ETFs are managed by Vanguard Investments Canada Inc.
Thought leadership
We provide research-driven insights into the topics foremost in advisors’
minds, as well as education and tools to help you build your practice.
Plain Talk
™Our candid approach to addressing market events and investment topics provides context for discussions that help you help your clients make informed choices.
A trusted name
Vanguard is a name that investors around the world have come to know for our commitment to serving our clients’ interests.
Key fact
Vanguard leads the U.S. ETF
market in almost every area
of the advisor experience
and is the leader in advisor
loyalty. (Cogent Research
Advisor Brandscape, 2014).
Contact us
If you would like to learn more about our products in Canada or about how we can help you build your practice, please visit our website, vanguardcanada.ca, call us at 888-293-6728, or write to us at the address below.
Vanguard Investments Canada Inc.
155 Wellington Street West Suite 3720
Toronto, ON M5V 3H1
© 2015 Vanguard Investments Canada Inc.
All rights reserved.
Connect with Vanguard
™vanguardcanada.ca
888-293-6728
Vanguard Investments Canada Inc.
155 Wellington Street West Suite 3720
Toronto, ON M5V 3H1
