FAQs

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.

Online brokerages

• BMO investorLine
• Canadian ShareOwner (Wealthsimple)
• CIBC Investor's Edge
• Desjardins Online Brokerage
• HSBC InvestDirect
• Interactive Brokers
• Laurentian Bank Discount Brokerage
• National Bank Direct Brokerage
• Qtrade Investor
• Questrade
• RBC Direct Investing
• Scotia iTrade
• TD Direct Investing
• Virtual Brokers

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 an advisor, ask your network for referrals or choose one through the Canadian Investment Regulatory Organization.

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 distribution information for an ETF or mutual fund:

• Visit our All products page
• Select the Distributions tab
• Beside each fund in the list you will find Distribution frequency, Payment date, Total Distribution per Unit, etc.
  

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.

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 and mutual funds are DRIP eligible.

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.

• Each ETF pays a management fee plus the harmonized sales tax (HST) to Vanguard Investments Canada Inc. The management fee is calculated and accrued daily and is paid monthly. This management fee covers, at least in part, Vanguard’s costs associated with acting as the trustee and manager of the ETF, the fee payable to the sub-advisor for its portfolio management services and the other fees and expenses of the fund (e.g., fees payable to the custodian, registrar and transfer agent, as well as fees payable to other service providers). At this time, no other fees and expenses are charged to the ETFs. 

• Each mutual fund pays a management fee plus the harmonized sales tax (HST). The maximum rate of the management fee payable by Vanguard Mutual Funds is 0.50% of NAV (net asset value) for Series F.

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.

The Fund Expense Ratio (FER) is a comprehensive measure that shows the total annual costs of owning an investment fund, expressed as a percentage of your investment. It captures both the ongoing management costs (MER) and the trading costs (TER) incurred within the fund.

MER + TER = FER 

Example: If you invest $10,000 in a fund with a 2.0% FER, you're paying approximately $200 annually in fund costs.

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.

The Trading Expense Ratio (TER) is the cost of buying and selling investments 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, 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.