FAQs
Frequently asked questions
Frequently asked questions
We have developed this FAQ to use as a guide to help answer certain questions you may have regarding Vanguard and/or our investment funds. If you have any additional questions, we recommend you consult a financial advisor and/or tax advisor for financial and/or tax information applicable to your specific situation.
You can buy Vanguard ETFs with the help of a financial advisor, or through an online brokerage account.
You can buy Vanguard mutual funds with the help of a financial advisor, or check with an online brokerage firm for availability.
Many investors find working with a professional financial advisor helpful, especially as they build wealth and their financial situation becomes more complex. An experienced financial advisor provides customized portfolio management and discipline, which can better position investors to reach their short- and long-term needs. A good financial advisor will also look beyond investments to offer guidance on taxes, retirement, estate planning, insurance, education planning and more.
If you don't have a financial advisor, ask your network for referrals or choose one through the Investment Industry Regulatory Organization of Canada or the Mutual Fund Dealers Association of Canada. From each site's homepage, select the Investors tab.
Unlike our mutual funds, ETFs do not have any minimum investment requirements as the units of an ETF are traded like any other security. Investors can purchase a minimum of one unit of any ETF with the help of a professional financial advisor or through an online brokerage account. Please note that most online brokerages charge a flat or minimum commission, so investors should consider the impact of fees, especially on small purchases of ETF units.
On an annual basis, securities regulators require investment fund managers, such as Vanguard, to notify/inform all investors in writing of the options to obtain a copy of an investment fund’s financial statements and/or management reports of fund performance (MRFPs) twice a year.
To find the most recent distribution amount of an ETF or mutual fund:
To find the distribution frequency of an ETF or mutual fund:
To find the historical distributions of an ETF or mutual fund:
To find distribution schedules:
Making an investment product choice is dependent on many factors including your risk tolerance and investment goals. At this time, we have not yet sought registration to allow us to provide financial advice, including recommendations on investment products, to individual investors. For investment product advice, we recommend you speak with a professional financial advisor.
We don’t sell our products directly to investors or manage investment accounts in Canada at this time. However, you can buy our products with the help of a financial advisor or through an online brokerage account.
Our target-date funds are only available through employer-sponsored group pension plans and not available to individual investors. For recommendations on alternatives, we recommend you speak with a professional financial advisor.
Foreign securities often trade and pay dividends or interest in the currency of their local markets. When Canadian investors hold unhedged ETFs with foreign securities, the investment return is impacted by currency movements. If the Canadian dollar strengthens against the foreign currency, that currency will buy fewer dollars and the return will be lower. If the foreign currency appreciates compared with the Canadian dollar, the return would be higher. This uncertainty is called currency risk.
Hedging exposure in investment products such as mutual funds or ETFs allows the product to reflect more closely the performance of international stocks or bonds in local currencies, without the daily ups and downs of exchange rates that would be associated with converting that performance into Canadian dollars. On the other hand, currency hedging transactions may incur extra expenses, may not perfectly offset foreign currency exposures, and may eliminate any benefit from favourable fluctuations in those currencies.
A distribution reinvestment plan (DRIP) reinvests cash distributions without charging a commission. Our ETFs are DRIP eligible; our mutual funds are not.
Under the plan, ETF distributions are reinvested to buy more units of the same product. You pay no commissions, and fund distributions stay in the market (unlike cash).
To enrol, speak with your financial advisor or online brokerage firm.
Also see our DRIP page.
A pre-authorized contribution (PAC) or pre-authorized cash contribution (PACC) plan allows investors to contribute to a fund at regular intervals, such as monthly. Vanguard mutual fund investors can establish these plans through their fund dealer. Vanguard ETFs are not PAC or PACC eligible.
A systematic withdrawal plan (SWP) allows investors to withdraw from a fund on a regular basis. Vanguard mutual fund investors can establish a SWP through their fund dealer. Vanguard ETFs are not SWP eligible.
No. As a steward of lifetime savings for more than 30 million people around the world, Vanguard takes a long-term view in the companies that we invest in to ensure their environmental, social and governance processes are strong. That’s why we regularly engage with companies on these topics, as well as with organizations and initiatives such as the Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures, and UN PRI – among others.
At Vanguard we are committed to low costs, which has not just benefitted our investors, but also helped drive down costs across the Canadian ETF industry. Since Vanguard entered the Canadian market 2011, Canadian investors have realized nearly $10 million in cumulative savings through expense reductions on our ETFs.
A Management Expense Ratio (MER) represents the combined total of the management fee, operating expenses and taxes charged to a fund during a given year expressed as a percentage of a fund’s average net assets for that year.
No. There is no duplication of management fees chargeable in connection with the asset allocation ETFs. Investors only pay the stated management fee of the asset allocation ETF. Investors do not pay the management fees of the underlying funds.
No. There is no duplication of management fees chargeable in connection with a Canadian ETF that wraps Canadian and/or U.S. listed ETFs. Investors only pay the stated management fee of the top Canadian ETF. Investors do not pay the management fees of the underlying funds.
When Canadian ETFs receive distributions from U.S. securities, tax will be withheld. A portion of foreign withholding taxes paid by a fund can be designated as foreign tax credits when foreign income is distributed. Investors may claim foreign tax credits when they file their tax returns.
Any foreign non-business income distributed by a Canadian Vanguard ETF will be reflected in the T3 tax form that your broker provides.
There is no withholding tax on capital gains in the U.S. Capital gains distributions are generally not subject to withholding tax.
Note that tax reporting is not required for investments in RRSPs or TFSAs.
You can find more information here.
Depending on your tax status and financial situation, certain investments may be more preferred than the others. Please consult a financial advisor and/or tax advisor for financial and/or tax information applicable to your specific situation.
Depending on your tax status and financial situation, certain investments may be more preferred than the others. Please consult a financial advisor and/or tax advisor for financial and/or tax information applicable to your specific situation.
Depending on your tax status and financial situation, certain investments may be more preferred than the others. Please consult a financial advisor and/or tax advisor for financial and/or tax information applicable to your specific situation.
Depending on your tax status, certain investments and distributions may be subject to tax. Please consult a financial advisor and/or tax advisor for financial and/or tax information applicable to your specific situation.
Tax information of fund distribution is reflected in T3 tax forms. To obtain your T3 tax forms, ask your financial advisor or log-in to your online brokerage account.
Any foreign non-business income distributed by an ETF will be reflected in the T3 tax form that your broker provides. Investors holding a U.S. ETF will receive a Form 1042-S which indicates types of income distributed.
We suggest consulting with a financial advisor, tax specialist and/or accountant with expertise in Canadian and U.S. tax law. Please note that Vanguard does not offer investment management accounts directly to retail investors in Canada at this time.
You can buy U.S.-listed ETFs with the help of a financial advisor or through an online brokerage account.
Vanguard Canada’s products are designed for use by Canadian residents. It is usually not possible to invest in them if living outside Canada, though it can depend on your unique circumstances. We suggest consulting with a financial advisor, tax specialist and/or accountant with expertise in tax law in both Canada and your country of residence.
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.