Vanguard to launch in Canada - MoneySense

Vanguard to launch in Canada

Their traditional low-cost ETFs may shake up industry if introduced


U.S.-based Vanguard Group announced today that they will soon be entering the Canadian market.

ETF investors may have a new reason to rejoice if the worlds biggest mutual fund company decides to offer Canadians what they are most known for  –– “rock bottom” ETF funds.

The fees on equity ETFs in the U.S , for example, are 60% lower than a similar iShares ETF.

Unfortunately, it’s unknown if they will offer those products to Canadians.

“Although Canada has a very well-developed asset management market, we believe our unique value proposition of low-costs, client alignment, and enduring investment solutions will resonate with Canadian investors,” said William McNabb, Vanguard Chairman and CEO in a press release.

They will first be offering Canadians products only through an investment advisor –– which are not necessary to purchase an ETF.

If they do offer ETFs, sources from the industry say that Vanguard — which made $40.4 billion in ETF net sales last year — will shake up the Canadian index-fund industry.

They are releasing more details about the launch of  “Vanguard Investments Canada Inc” soon.

The ETF industry has grown 27% every year for the past five years in Canada, so expect more competitors to jump in the Canadian market.