VAB ETF: Investment objective
Launched in 2011, the Vanguard Canadian Aggregate Bond Index (VAB ETF) is a standout in the Canadian bond market, amassing nearly $4 billion in assets. This ETF employs a passive strategy, tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index and investing in investment-grade bonds across Canada. What sets VAB apart is its low 0.09% Management Expense Ratio (MER), an impressive 3.55% distribution yield, and a commitment to excellent credit quality. Notably, VAB’s MER is tied for the lowest on this list. The fund’s weighted average duration aligns with its counterparts at 7.4 years, providing a balanced approach.
Historical performance
| ETF | Div Yld | |
|---|---|---|
| VAB | 3.12% |
Historical performance updated daily
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In the realm of financial markets, the dynamics of bonds in the face of rising interest rates are crucial to understand. While bond prices may experience declines in such scenarios, their appeal lies in the reliability of interest payments and the eventual return of capital upon maturity. Bond Exchange-Traded Funds (ETFs) offer an intriguing alternative, combining low-cost benefits with diversified exposure to the bond market. However, unlike individual bonds, ETFs lack a fixed maturity date.
Designed with long-term investors in mind, bond ETFs provide a cost-effective solution, delivering competitive yields that surpass the returns from keeping funds in idle cash. The strength of these ETFs lies in their ability to navigate various interest rate cycles, offering a dynamic approach to bond investing. Diversification is a key advantage, spreading risk across a portfolio of bonds and enhancing stability compared to holding individual bonds.
While individual bonds assure a fixed return of capital, bond ETFs present a more flexible and diversified strategy. This makes them particularly appealing to investors with extended time horizons, seeking a balance between regular income, potential capital appreciation, and risk mitigation through diversification. In essence, the choice between individual bonds and bond ETFs hinges on the investor’s goals, risk tolerance, and preference for a dynamic or fixed approach to capital deployment.
VAB MER
| ETF | MER* % |
| Vanguard Canadian Aggregate Bond Index | 0.32 |
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VAB ETF Stock Profile
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VAB Stock 52 weeks high and low
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VAB ETF Distribution history
| Ex-div Date | Record Date | Payment Date | Cash Distribution per Unit |
|---|---|---|---|
| 28 Sep 2023 | 02 Oct 2023 | 10 Oct 2023 | $0.053986 |
| 31 Aug 2023 | 01 Sep 2023 | 11 Sep 2023 | $0.062576 |
| 31 Jul 2023 | 01 Aug 2023 | 09 Aug 2023 | $0.054542 |
| 30 Jun 2023 | 04 Jul 2023 | 11 Jul 2023 | $0.056222 |
| 31 May 2023 | 01 Jun 2023 | 08 Jun 2023 | $0.061588 |
Consult issuers’ website for up-to-date data