Tax Centre
Answers to your top tax questions
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:
- Take the distributions as a cash payment.
- Reinvest the distributions by purchasing more units at the prevailing price.
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.
- Registered account – qualified registered accounts are exempt from the U.S. withholding tax
- Non-registered account – investors are subject to a 15% U.S. withholding tax but may claim this via the foreign tax credit as reported on the tax slip.
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.
For non-registered investors, distributions received from mutual fund trusts are reported on a T3 tax slip (or Releve 16 in Quebec). T3 tax slips for Vanguard Canada mutual funds are mailed in March following the end of the tax year by the transfer agent directly to investors.
T3 slips for ETFs are issued by your brokerage firm, not by Vanguard Canada. Your broker retrieves the tax factors from CDS and generates the T3 slips, which is then sent directly to you.
No. Vanguard Canada does not prepare or mail T3 tax slips for the ETFs. All ETF tax slips are issued by the investor’s broker.
Under Canada Revenue Agency (CRA) rules, T3 tax slips must be issued to investors no later than 90 days after the end of the trust’s tax year, typically a March 31 deadline.
Press releases and distributions
Tax resources for Canadian investors
Passive Foreign Investment Company (PFIC) statements
Vanguard has chosen to proactively provide 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.
PFIC statement history
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 |
|
VIDY |
FTSE Developed ex North America High Dividend Yield Index ETF |
|
VVSG |
Canadian Ultra-Short Government Bond Index ETF |
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 |
2024 |
| VVSG | Canadian Ultra-Short Government Bond Index ETF | 2024 |
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) |
PFIC frequently asked questions
A Passive Foreign Investment Company (PFIC) is a non-U.S. trust or corporation held by a U.S. person that meets one of the following criteria:
- Income test: At least 75% of its gross income in a given year is considered passive income (e.g. dividends, interest, rent, royalties and capital gains from the disposition of securities).
- Asset test: 50% or more of the assets for the year are held for the purpose of producing passive income.
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:
- Qualified Electing Fund (QEF) election
- Mark-to-market election
- Excess distribution method
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.