Tax Centre
Your source for tax information on all Vanguard investment products. Your source for tax information on all Vanguard investment products.
Your source for tax information on all Vanguard investment products. Your source for tax information on all Vanguard investment products.
Each Vanguard ETF pays distributions in accordance with the distribution policy disclosed in the ETF’s prospectus. Cash distribution will be paid on a monthly, quarterly or annual basis, depending upon the particular Vanguard ETF. Cash distributions are expected to consist of primarily of income, but may, at the manager’s discretion, include capital gains and/or return of capital.
Capital gains are usually distributed at year-end. The amounts will be re-invested and the resulting units immediately consolidated, so that the number of units held by each investor will not change.
Mutual funds/ETFs use money received from investors to buy securities. Depending on the investment objective of a fund, the securities purchased can generate income in the form of interest or dividends. In addition, capital gains or losses may be realized when securities held in the fund are sold.
Income earned within a fund is first used to pay its management and administration fees. Any taxable income left is distributed to investors. It is better for funds to pay distributions to investors because many investors are taxed at a lower tax rate than the funds.
Mutual funds always pay tax at the highest tax rate for each category of income.
Interest income |
Earned on income generating investments, such as T-bills and bonds Fully taxable in the hands of investors |
Foreign Income |
Earned when the fund receives foreign dividends or interest on non-Canadian investments Fully taxable with foreign tax credits to recover taxes paid by funds |
Canadian Dividends |
Received when shares of Canadian corporations distribute Either eligible or ineligible Preferential tax treatment though dividend tax credits |
Capital Gains |
· Realized when an investment within a fund is sold for more than its original cost · Aggregated all dispositions, including losses · Preferential tax treatment, only 50% of a capital gain is taxable and included in the investors’ income
|
Return of Capital |
· Payout in excess of fund’s earnings (income and capital gains) · Represents a return of an investor’s portion on their own invested capital · Not taxable in the year received by investors, but reduces the adjusted cost base of the investments, which generally result in a higher capital gain or a lower capital loss when the investment is subsequently sold
|
In general, the tax treatments of mutual funds and ETFs are very similar. Unlike mutual funds, which only trade once per day, ETFs provide more flexibility to get into or out of a security position at any time throughout the day. Investors realize gains /losses by trading their ETFs on the designated stock exchanges.
There are two options for distributions:
The U.S. withholding tax rate is 30% to foreign investors on U.S. dividends. Canadian investors are typically subject to a 15% withholding tax due to a tax treaty between the U.S. and Canada. Additionally, foreign withholding taxes will be applied differently based on the type of investment account you have.
Non-registered accounts receive information to allow investors to report income earned from investments during the year.
A T3 tax slip (or Releve 16 in Quebec) shows the interest, dividends, capital gains, RoC and foreign income, as well as any foreign income taxed paid.
Capital gains are realized when an investment within a fund is sold for more than its original purchase price (or adjusted cost base). Capital gains have more preferential tax treatment, as only 50% of a capital gain is taxable.
Vanguard has chosen to proactively provide Passive Foreign Investment Company (PFIC) annual information statements. These statements apply only to U.S. persons who are unitholders of our Canada-domiciled exchange-traded funds (ETFs) and who file a U.S. income tax return with the Internal Revenue Service.
We will provide PFIC statements for our ETFs prior to the April U.S. tax reporting deadline.
All files are downloadable/viewable PDF.
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VVO |
Global Minimum Volatility ETF |
|
VMO |
Global Momentum Factor ETF |
|
VVL |
Global Value Factor ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VCB |
Canadian Corporate Bond Index ETF |
|
VGV |
Canadian Government Bond Index ETF |
|
VLB |
Canadian Long-Term Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VGAB |
Global Aggregate Bond Index ETF (CAD-hedged) |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VEQT |
All-Equity ETF Portfolio |
|
VBAL |
Balanced ETF Portfolio |
|
VCNS |
Conservative ETF Portfolio |
|
VCIP |
Conservative Income ETF Portfolio |
|
VGRO |
Growth ETF Portfolio |
|
VRIF |
Retirement Income ETF Portfolio |
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VVO |
Global Minimum Volatility ETF |
|
VMO |
Global Momentum Factor ETF |
|
VVL |
Global Value Factor ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VCB |
Canadian Corporate Bond Index ETF |
|
VGV |
Canadian Government Bond Index ETF |
|
VLB |
Canadian Long-Term Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VGAB |
Global Aggregate Bond Index ETF (CAD-hedged) |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VEQT |
All-Equity ETF Portfolio |
|
VBAL |
Balanced ETF Portfolio |
|
VCNS |
Conservative ETF Portfolio |
|
VCIP |
Conservative Income ETF Portfolio |
|
VGRO |
Growth ETF Portfolio |
|
VRIF |
Retirement Income ETF Portfolio |
| Ticker | Vanguard ETF | PFIC statement |
| VCN | FTSE Canada All Cap Index ETF | 2021 |
| VCE | FTSE Canada Index ETF | 2021 |
| VRE | FTSE Canadian Capped REIT Index ETF | 2021 |
| VDY | FTSE Canadian High Dividend Yield Index ETF | 2021 |
| VIU | FTSE Developed All Cap ex North America Index ETF | 2021 |
| VI | FTSE Developed All Cap ex North America Index ETF (CAD-hedged) | 2021 |
| VDU | FTSE Developed All Cap ex U.S. Index ETF | 2021 |
| VEF | FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) | 2021 |
| VA | FTSE Developed Asia Pacific All Cap Index ETF | 2021 |
| VE | FTSE Developed Europe All Cap Index ETF | 2021 |
| VEE | FTSE Emerging Markets All Cap Index ETF | 2021 |
| VXC | FTSE Global All Cap ex Canada Index ETF | 2021 |
| VVO | Global Minimum Volatility ETF | 2021 |
| VMO | Global Momentum Factor ETF | 2021 |
| VVL | Global Value Factor ETF | 2021 |
| VFV | S&P 500 Index ETF | 2021 |
| VSP | S&P 500 Index ETF (CAD-hedged) | 2021 |
| VGG | U.S. Dividend Appreciation Index ETF | 2021 |
| VGH | U.S. Dividend Appreciation Index ETF (CAD-hedged) | 2021 |
| VUN | U.S. Total Market Index ETF | 2021 |
| VUS | U.S. Total Market Index ETF (CAD-hedged) | 2021 |
| VAB | Canadian Aggregate Bond Index ETF | 2021 |
| VCB | Canadian Corporate Bond Index ETF | 2021 |
VGV |
Canadian Government Bond Index ETF |
2021 |
| VLB | Canadian Long-Term Bond Index ETF | 2021 |
| VSB | Canadian Short-Term Bond Index ETF | 2021 |
| VSC | Canadian Short-Term Corporate Bond Index ETF | 2021 |
| VGAB | Global Aggregate Bond Index ETF (CAD-hedged) | 2021 |
| VBG | Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) | 2021 |
| VBU | U.S. Aggregate Bond Index ETF (CAD-hedged) | 2021 |
| VEQT | All-Equity ETF Portfolio | 2021 |
| VBAL | Balanced ETF Portfolio | 2021 |
| VCNS | Conservative ETF Portfolio | 2021 |
| VCIP | Conservative Income ETF Portfolio | 2021 |
| VGRO | Growth ETF Portfolio | 2021 |
| VRIF | Retirement Income ETF Portfolio | 2021 |
| Ticker | Vanguard ETF | PFIC statement |
| VCN | FTSE Canada All Cap Index ETF | 2020 |
| VCE | FTSE Canada Index ETF | 2020 |
| VRE | FTSE Canadian Capped REIT Index ETF | 2020 |
| VDY | FTSE Canadian High Dividend Yield Index ETF | 2020 |
| VIU | FTSE Developed All Cap ex North America Index ETF | 2020 |
| VI | FTSE Developed All Cap ex North America Index ETF (CAD-hedged) | 2020 |
| VDU | FTSE Developed All Cap ex U.S. Index ETF | 2020 |
| VEF | FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) | 2020 |
| VA | FTSE Developed Asia Pacific All Cap Index ETF | 2020 |
| VE | FTSE Developed Europe All Cap Index ETF | 2020 |
| VEE | FTSE Emerging Markets All Cap Index ETF | 2020 |
| VXC | FTSE Global All Cap ex Canada Index ETF | 2020 |
| VVO | Global Minimum Volatility ETF | 2020 |
| VMO | Global Momentum Factor ETF | 2020 |
| VVL | Global Value Factor ETF | 2020 |
| VFV | S&P 500 Index ETF | 2020 |
| VSP | S&P 500 Index ETF (CAD-hedged) | 2020 |
| VGG | U.S. Dividend Appreciation Index ETF | 2020 |
| VGH | U.S. Dividend Appreciation Index ETF (CAD-hedged) | 2020 |
| VUN | U.S. Total Market Index ETF | 2020 |
| VUS | U.S. Total Market Index ETF (CAD-hedged) | 2020 |
| VAB | Canadian Aggregate Bond Index ETF | 2020 |
| VCB | Canadian Corporate Bond Index ETF | 2020 |
VGV |
Canadian Government Bond Index ETF |
2020 |
| VLB | Canadian Long-Term Bond Index ETF | 2020 |
| VSB | Canadian Short-Term Bond Index ETF | 2020 |
| VSC | Canadian Short-Term Corporate Bond Index ETF | 2020 |
| VGAB | Global Aggregate Bond Index ETF (CAD-hedged) | 2020 |
| VBG | Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) | 2020 |
| VBU | U.S. Aggregate Bond Index ETF (CAD-hedged) | 2020 |
| VEQT | All-Equity ETF Portfolio | 2020 |
| VBAL | Balanced ETF Portfolio | 2020 |
| VCNS | Conservative ETF Portfolio | 2020 |
| VCIP | Conservative Income ETF Portfolio | 2020 |
| VGRO | Growth ETF Portfolio | 2020 |
| VRIF | Retirement Income ETF Portfolio | 2020 |
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VAH |
FTSE Developed Asia Pacific All Cap Index ETF (CAD-hedged) |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEH |
FTSE Developed Europe All Cap Index ETF (CAD-hedged) |
|
VIDY |
FTSE Developed ex North America High Dividend Yield Index ETF |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VLQ |
Global Liquidity Factor ETF |
|
VVO |
Global Minimum Volatility ETF |
|
VMO |
Global Momentum Factor ETF |
|
VVL |
Global Value Factor ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VCB |
Canadian Corporate Bond Index ETF |
|
VGV |
Canadian Government Bond Index ETF |
|
VLB |
Canadian Long-Term Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VSG |
Canadian Short-Term Government Bond Index ETF |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VEQT |
All-Equity ETF Portfolio |
|
VBAL |
Balanced ETF Portfolio |
|
VCNS |
Conservative ETF Portfolio |
|
VCIP |
Conservative Income ETF Portfolio |
|
VGRO |
Growth ETF Portfolio |
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VAH |
FTSE Developed Asia Pacific All Cap Index ETF (CAD-hedged) |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEH |
FTSE Developed Europe All Cap Index ETF (CAD-hedged) |
|
VIDY |
FTSE Developed ex North America High Dividend Yield Index ETF |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VLQ |
Global Liquidity Factor ETF |
|
VVO |
Global Minimum Volatility ETF |
|
VMO |
Global Momentum Factor ETF |
|
VVL |
Global Value Factor ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VCB |
Canadian Corporate Bond Index ETF |
|
VGV |
Canadian Government Bond Index ETF |
|
VLB |
Canadian Long-Term Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VSG |
Canadian Short-Term Government Bond Index ETF |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBAL |
Balanced ETF Portfolio |
|
VCNS |
Conservative ETF Portfolio |
|
VGRO |
Growth ETF Portfolio |
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VAH |
FTSE Developed Asia Pacific All Cap Index ETF (CAD-hedged) |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEH |
FTSE Developed Europe All Cap Index ETF (CAD-hedged) |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VLQ |
Global Liquidity Factor ETF |
|
VVO |
Global Minimum Volatility ETF |
|
VMO |
Global Momentum Factor ETF |
|
VVL |
Global Value Factor ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VCB |
Canadian Corporate Bond Index ETF |
|
VGV |
Canadian Government Bond Index ETF |
|
VLB |
Canadian Long-Term Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VSG |
Canadian Short-Term Government Bond Index ETF |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VAH |
FTSE Developed Asia Pacific All Cap Index ETF (CAD-hedged) |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEH |
FTSE Developed Europe All Cap Index ETF (CAD-hedged) |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VLQ |
Global Liquidity Factor ETF |
|
VVO |
Global Minimum Volatility ETF |
|
VMO |
Global Momentum Factor ETF |
|
VVL |
Global Value Factor ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
Ticker |
Vanguard ETF |
PFIC statement |
VCN |
FTSE Canada All Cap Index ETF |
|
VCE |
FTSE Canada Index ETF |
|
VRE |
FTSE Canadian Capped REIT Index ETF |
|
VDY |
FTSE Canadian High Dividend Yield Index ETF |
|
VIU |
FTSE Developed All Cap ex North America Index ETF |
|
VI |
FTSE Developed All Cap ex North America Index ETF (CAD-hedged) |
|
VDU |
FTSE Developed All Cap ex U.S. Index ETF |
|
VEF |
FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged) |
|
VA |
FTSE Developed Asia Pacific All Cap Index ETF |
|
VE |
FTSE Developed Europe All Cap Index ETF |
|
VEE |
FTSE Emerging Markets All Cap Index ETF |
|
VXC |
FTSE Global All Cap ex Canada Index ETF |
|
VFV |
S&P 500 Index ETF |
|
VSP |
S&P 500 Index ETF (CAD-hedged) |
|
VGG |
U.S. Dividend Appreciation Index ETF |
|
VGH |
U.S. Dividend Appreciation Index ETF (CAD-hedged) |
|
VUN |
U.S. Total Market Index ETF |
|
VUS |
U.S. Total Market Index ETF (CAD-hedged) |
|
VAB |
Canadian Aggregate Bond Index ETF |
|
VSB |
Canadian Short-Term Bond Index ETF |
|
VSC |
Canadian Short-Term Corporate Bond Index ETF |
|
VBG |
Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) |
|
VBU |
U.S. Aggregate Bond Index ETF (CAD-hedged) |
A PFIC is a non-U.S. trust or corporation held by a U.S. person that meets one of the following criteria:
Canadian mutual fund trusts (including ETFs) and mutual fund corporations are considered PFICs and, therefore, are subject to the PFIC rules.
Only U.S. persons are affected by the PFIC rules. A U.S. person includes a U.S. citizen, U.S. green card holder, U.S. resident and other persons with a substantial connection to the U.S. A Canadian who spends a significant amount of time in the U.S. (i.e. more than 183 days in the calendar year) may be considered to be a U.S. person for purposes of the PFIC rules.
There are three primary methods of PFIC reporting available to U.S. persons:
Vanguard uses the QEF election method to provide PFIC reporting data.
PFIC annual information statements contain reporting information that enables investors classified as U.S. persons to treat a fund or ETF as a Qualified Electing Fund (QEF) and file an election with their U.S. tax returns. Whether the QEF election is appropriate for you depends on your personal circumstances. The QEF election is the only way that the appreciation in a fund's value can be eligible to be treated as a capital gain for U.S. taxation.
Year-end PFIC statements for each tax year are expected to be posted on the Vanguard Canada site on or about March 31 of the following year.
Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc. and are available across Canada through registered dealers.
This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial and/or tax advisor for financial and/or tax information applicable to their specific situation.
All investment funds, including those that seek to track an index are subject to risk, including the possible loss of principal. Diversification does not ensure a profit or protect against a loss in a declining market. While the Vanguard ETFs are designed to be as diversified as the original indices they seek to track and can provide greater diversification than an individual investor may achieve independently, any given ETF may not be a diversified investment.
All monetary figures are expressed in Canadian dollars unless otherwise noted.