Vanguard adds five new ETFs to Canadian lineup

Mon Aug 12, 2013 12:01pm EDT
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Aug 12 (Reuters) - Vanguard Group has listed five new exchange-traded funds in Canada as the No. 1 U.S. mutual fund company expands in the region, which last month reached more than $1 billion in assets under management.

The five new equity ETFs, which were to begin trading on the Toronto Stock Exchange on Monday, join Vanguard's roster of 11 ETFs currently listed in Canada.

Valley Forge, Pennsylvania-based Vanguard entered the Canadian market in December 2011.

ETFs track a basket of shares, bonds or commodities and can be traded in real time on exchanges like stocks. They offer access to indexes without having to buy the individual underlying securities.

While exchange-traded products, including ETFs, in Canada have gathered $4.3 billion in net inflows since the start of the year, Canada was the only major region to register outflows for ETPs in July, with $800 million moving out of such Canadian-listed funds, according to BlackRock Inc's latest monthly ETP Landscape report.

The report counted 281 exchange-traded products listed in Canada at the end of July, compared with 1,490 products listed in the United States.

The newly listed ETFs are the Vanguard FTSE Canada All Cap Index ETF ; the Vanguard FTSE Developed ex North America Index ETF ; the Vanguard U.S. Dividend Appreciation Index ETF (hedged to the Canadian dollar) ; the Vanguard U.S. Dividend Appreciation Index ETF ; and the Vanguard U.S. Total Market Index ETF.

Vanguard plans to offer two new fixed-income ETFs in Canada - the Vanguard U.S. Aggregate Bond Index ETF and the Vanguard Global ex-U.S. Aggregate Bond Index ETF, both hedged to the Canadian dollar. It plans to offer the funds "in the near future."

Vanguard manages more than $2.5 trillion in global assets, including $285 billion in global ETF assets.