Vanguard Investments Canada Inc has listed the Vanguard FTSE Developed ex North America High Dividend Yield Index ETF, designed to provide a low-cost and global investment option for investors looking for an income component within their portfolios.
The ETF began trading on the TSX with a management fee of 0.28 per cent.
“Canadian investors and advisors are increasingly looking for global income-oriented solutions,” says Atul Tiwari, managing director of Vanguard Investments Canada Inc. “This ETF helps meet that need with an easy-to-understand investment process featuring strong equity yield potential with low-costs and a disciplined risk management framework.”
Vanguard FTSE Developed ex North America High Dividend Yield Index ETF (TSX:VIDY) – The Vanguard FTSE Developed ex North America High Dividend Yield Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad international equity index that measures the investment return of common stocks of companies characterized by high dividend yield, with a focus on those located in developed markets, excluding North America.
The management fee is equal to the fee paid by the Vanguard fund to Vanguard Investments Canada Inc. and does not include applicable taxes or other fees and expenses of the Vanguard fund.
“We have seen that Canadian investors value equity income options that are low-cost, global and well-diversified,” says Tim Huver, head of product, Vanguard Investments Canada Inc. “This ETF provides exposure to the largest high dividend-paying companies across a diversified mix of 23 developed international markets outside of North America.”
The new ETF makes quarterly distributions. It is rebalanced annually and offers exposure to large-cap and mid-cap companies characterised by above-average dividend yields.