FTSE’s benchmark methodology

 

FTSE Group (“FTSE”) is a world leader in the creation and management of indexes. FTSE calculates and manages a comprehensive range of equity, fixed income, real estate and investment strategy indexes, on both standard and custom bases. The FTSE Global Equity Index Series covers more than 17,000 securities in 49 countries and captures 99% of the world’s investable market capitalization.

FTSE uses transparent rules in determining inclusion in its indexes. Committees periodically review the indexes to ensure they remain objective and accurately reflect their target markets. Stocks are screened for liquidity and adjusted for free float so benchmarks reflect the shares available in the open market.

FTSE Russell website

 

Vanguard ETFs^® and their FTSE benchmarks

Vanguard ETF	Ticker	Target index	Management fee1	Management expense ratio2
Vanguard FTSE Canada Index ETF	VCE	FTSE Canada Index	0.05%	0.05%
Vanguard FTSE Canada All Cap Index ETF	VCN	FTSE Canada All Cap Index	0.05%	0.05%
Vanguard FTSE Canadian High Dividend Yield Index ETF	VDY	FTSE Canada High Dividend Yield Index	0.20%	0.21%
Vanguard FTSE Canadian Capped REIT Index ETF	VRE	FTSE Canada All Cap Real Estate Capped 25% Index	0.35%	0.38%
Vanguard FTSE Developed All Cap ex North America Index ETF	VIU	FTSE Developed All Cap ex North America Index	0.20%	0.22%
Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-hedged)	VI	FTSE Developed All Cap ex North America Hedged to CAD Index	0.20%	0.22%
Vanguard FTSE Developed All Cap ex U.S. Index ETF	VDU	FTSE Developed ex US Index	0.20%	0.21%
Vanguard FTSE Developed All Cap ex U.S. Index ETF (CAD-hedged)	VEF	FTSE Developed All Cap ex US Hedged to CAD Index	0.20%	0.21%
Vanguard FTSE Developed ex North America High Dividend Yield Index ETF	VIDY	FTSE Developed ex North America High Dividend Yield Index	0.28%	0.30%
Vanguard FTSE Developed Europe All Cap Index ETF	VE	FTSE Developed Europe All Cap Index	0.20%	0.21%
Vanguard FTSE Developed Asia Pacific All Cap Index ETF	VA	FTSE Developed Asia Pacific All Cap Index	0.20%	0.22%
Vanguard FTSE Emerging Markets All Cap Index ETF	VEE	FTSE Emerging Markets All Cap China A Inclusion Index	0.23%	0.24%
Vanguard FTSE Global All Cap ex Canada Index ETF	VXC	FTSE Global All Cap ex Canada China A Inclusion Index	0.20%	0.21%

¹ The management fee is equal to the fee paid by the fund to Vanguard Investments Canada Inc. to manage the fund and does not include applicable taxes or other fees and expenses of the fund. For any fund which invests in underlying Vanguard fund(s), there shall be no duplication of management fees chargeable in connection with the Vanguard fund and its investment in the Vanguard fund(s).

² The management expense ratio (MER) is the audited MER as of December 31, 2020, including waivers and absorptions and is expressed as an annualized percentage of the daily average net asset value. The MER without any absorptions or waivers would have been 0.05% for VCE, 0.05% for VCN, 0.21% for VDY, 0.38% for VRE, 0.21% for VXC, 0.22% for VIU, 0.22% for VI, 0.21% for VDU, 0.21% for VEF, 0.22% for VE, 0.22% for VA, and 0.24% for VEE. Vanguard Investments Canada Inc. expects to continue absorbing or waiving certain fees indefinitely, but may in its discretion, discontinue this practice at any time.

All investments, including those that seek to track indexes, 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 ETFs are designed to be as diversified as the original indexes 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. Foreign investing involves additional risks, including currency fluctuations and political uncertainty. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries.