Toronto-based Vanguard Investments Canada Inc. has launched two currency-hedged exchange-traded funds (ETFs) that are designed to provide exposure to all-capitalization benchmarks in their respective markets.
The new ETFs are meant to meet the demand from investors and financial advisors who would like products that focus on global diversification while limiting foreign-currency risk, says Atul Tiwari, managing director for Vanguard Investments Canada, in a statement.
Vanguard FTSE Developed Asia Pacific All Cap Index (CAD-hedged) ETF seeks to track the performance of a broad Asia Pacific equity index that’s hedged to the Canadian dollar (C$) and focuses on developed Asia Pacific markets.
Vanguard FTSE Developed Europe All Cap Index (CAD-hedged) ETF looks to track the performance of a broad European equity index, also hedged to the C$, that focuses on developed European markets.
Both ETFs follow all-cap benchmarks that include large-, mid-, and small-cap stocks and will include a management fee of 0.2%. The ETFs began trading on the Toronto Stock Exchange on Tuesday.
Previously launched non-hedged versions of the two ETFs, Vanguard FTSE Developed Asia Pacific All Cap Index ETF and Vanguard FTSE Developed Europe All Cap Index ETF, are also available, the firm’s announcement states.
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