Vanguard Canada Adds Five New Funds To The Mix

Vanguard Canada offers five new exchange traded funds to the Toronto Stock Exchange.  

As I’ve said here in the Globe and Mail, they’re definitely worth considering:  

Read the Article

 





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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5 Responses

  1. Steve McMurdo says:

    Hello Andrew,

    I have really enjoyed reading your articles in the globe and all of your posts related to being an international teacher. I am also a teacher, working in Canada, and am residing in Yellowknife for the time being. My background is in Business Admin, but unfortunately I have been working in areas that do not provide business courses in the local high schools, so I have been teaching elementary.

    Anyway, to my question. I have been able to accrue a little bit of a nest egg in both my RRSP and TFSA (maxed out). I have been building a bond ladder in my RRSP and will continue to do so. However, I am considering splitting my TFSA account into equal portions between VDU, VFV, and VCE. I know that this is not tax efficient, with regards to the withholding tax.

    My question is: would it be better to switch all of my TFSA funds into american dollars and then just purchase the US equivalent ETF’s? I would be contributing the max each year and will rebalance accordingly (ie buy more of what has decreased in price so that my allocations remain the same). I can hold US funds in my TFSA but I will have to convert each year to purchase the US ETF’s.

    Also, my money is sitting in cash at the moment, would you suggest waiting to purchase the ETF’s listed above, or just jump in now and stop trying to time the market?

    Thanks you for your time!

    Steve

    • Hi Steve,

      It sounds like you have a great foundation, in terms of your savings discipline and your investment philosophy. Taxes can certainly be tricky, but one thing’s for sure: conversion costs from one currency to another can eat up about 1%, and then another 1% when you sell. Vanguard’s ETFs on the TSX will only get cheaper as they attract more assets, so you may want to stick with them. Either way, as mentioned, you have a great overall plan in place.

      Cheers,

      Andrew

  2. Ben says:

    Hello Andrew,
    my wife is a non-resident Canadian. I am American and I already have a Vanguard account. It looks like there is now a Vanguard Canada although I am not seeing a sign-up option. Is it possible for her to open a Vanguard account on the US sight? As a Candian, perhaps you can provide some extra insight into her investment options. Thanks.

  3. Ben says:

    Not getting much help so far trying to contact Vanguard. Will keep trying though.

    • Ben,

      Your Canadian wife can’t open an account with Vanguard. She can, however, open a brokerage account with another company and purchase Vanguard-based ETFs. She could do so with a TD Waterhouse account (make sure she declares that she’s a non resident) or if she’s worried about jeopardizing her non residency status (this second option adds that extra element of certainty) she could open a brokerage account with TD International, based in Luxembourg, and wire her money there when she’s ready to make a transaction. Once that account (or the other) is up and running, she can purchase exchange traded index funds (ETFs). Those on the Vanguard Canada site are great. Look up the ticker symbols for each, and buy a Canadian stock index (there are two, buy the broader one for more diversification); the international stock index, the non-hedged total U.S. stock index (as mentioned in the above article) and the short term government bond index. Off the top of my head, I do remember the bond index ticker: VSB.

      And if you have a moment to review my book on Amazon, I’d love that. Here’s the link: http://bit.ly/mtreviews

      Let me know if you have other questions Ben.
      Andrew

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