Author Topic: Canada - anyone see problems with VAB.TO?  (Read 2295 times)

scottish

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Canada - anyone see problems with VAB.TO?
« on: March 03, 2015, 06:46:17 PM »
This is the Vanguard Canadian aggregate bond index ETF.

It's MER is much lower than other Canadian bond index ETFs/funds at 0.12%, so I am getting ready to switch from my TD e-series fund which is charging me 0.50%.

With these low interest rates, every bit helps!

Al1961

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Re: Canada - anyone see problems with VAB.TO?
« Reply #1 on: March 03, 2015, 06:52:15 PM »
What's the duration on the Vanguard Fund?

MMMdude

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Re: Canada - anyone see problems with VAB.TO?
« Reply #2 on: March 03, 2015, 07:11:36 PM »
I own VAB.  I used to just plow my bond allocation into PH&N funds but unfortunately Itrade no longer allows online purchase of them and calling in with those guys is a huge PITA so i just switched to VAB.
« Last Edit: March 03, 2015, 07:39:15 PM by MMMdude »

RichMoose

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Re: Canada - anyone see problems with VAB.TO?
« Reply #3 on: March 03, 2015, 07:27:30 PM »
I don't invest in bonds myself because of my young age and long time line. But VAB.TO will be my first choice when I do.

scottish

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Re: Canada - anyone see problems with VAB.TO?
« Reply #4 on: March 03, 2015, 07:43:02 PM »
Average duration is 7.9 years.   

40% in 1 to 5 years
25% in 5 to 10 years
16% in > 25 years

Heckler

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Re: Canada - anyone see problems with VAB.TO?
« Reply #5 on: March 03, 2015, 09:46:17 PM »
My only problem with my recently purchased 364 units ($9624) of VAB is that it's not enough to compound, because the price has gone up in the last month and I was $0.15 short on buying another via the DRIP.  Dammit, I need more!

FI40

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Re: Canada - anyone see problems with VAB.TO?
« Reply #6 on: March 05, 2015, 01:53:11 PM »
Certainly no problem with VAB. I chose VSC for shorter duration and slightly higher yield from more large corporates (mostly the banks). I think they're nearly as safe as govt bonds, at least at short maturities IMO.