About Vanguard Why do we exist? To take a stand for all investors, to treat them fairly and to give them the best chance for investment success.

Vanguard at a glance

Vanguard was founded in Valley Forge, Pennsylvania, in 1975 on a simple but revolutionary idea—that an investment company should manage the funds it offers in the sole interest of its clients. Today, the Vanguard organization worldwide manages more than $7 trillion in assets through our 21 office locations. We offer 191 funds in the United States, and 224 funds outside the United States, including 39 ETFs and four mutual funds through our Canadian subsidiary, Vanguard Investments Canada Inc. Vanguard serves more than 20 million investors worldwide.

17,600 Number of crew 415 members worldwide Number of Vanguard funds, globally Calgary Vancouver London Amsterdam Frankfurt Montreal Paris Toronto urich Beijing Washington, D.C. Valley Forge Tok yo Scottsdale Charlotte Shanghai

ong ong Mexico City

$7.0 trillion Global assets 20 million+ under management Number of Vanguard investors Brisbane

Sydney Melbourne

Source: Vanguard. Data as of March 31. 2019, except assets as of February 29, 2019. All monetary figures in this brochure are expressed in Canadian dollars unless otherwise noted. 3 25 $3,857M $3,675M

75 Who we serve

Vanguard serves investors around the world through a variety of channels, including directly, through advisors and through company retirements plans.

Financial advisors (U.S.) Vanguard offers products, programs and services that help advisors serve their clients and grow their businesses.

Institutions (U.S.) Thousands of corporations, institutions, 16% retirement plans and consultants rely on Vanguard to manage their assets and help keep their investment programs on track. 21% 19% ETFs (U.S. and non-U.S.) $7 trillion Vanguard brings its disciplined, low-cost Assets under management approach to exchange-traded funds (ETFs), offering millions of investors the opportunity 7% for flexibility and broad diversification.

38% Global investors (non-U.S.) Investors and financial advisors in Canada and around the world benefit from Vanguard’s low costs, client focus and time-tested investment philosophy.

Individuals (U.S.) Millions of individuals come to Vanguard on their own for help reaching investment goals and building long-term wealth.

Source: Vanguard. Data as of December 31, 2018. Percentages may not add to 100% due to rounding. 4

Why costs matter

Investors can’t control the markets, but they can control the costs of investing. Providing low-cost investments isn’t a pricing strategy for us. It’s how we do business. Vanguard’s scale also helps to keep costs low. As our assets under management increase globally, we can reduce expense ratios for the investors in our funds.

Average Canada MERs, 2015-2017 Average U.S. expense ratios, 1988–2018

2.25 2.12 2.11 2.10 1.00

0.75 U.S. mutual 1.50 fund industry: 0.58 0.50

0.75 0.25 0.10 Vanguard 0.35 0.37 0.36 U.S.-domiciled 0.15 0.15 0.16 0 mutual funds and ETFs 0 1988 1997 2007 2018 Dec 2015 Dec 2016 Dec 2017 Vanguard U.S.-domiciled mutual funds and ETFs Vanguard Canada-domiciled ETFs U.S. mutual fund and ETF industry Canada ETF industry Canada mutual fund industry

Sources: The management expense ratios (MERs) are asset-weighted- Sources: Vanguard, Morningstar, Inc. and Lipper, a Thomson Reuters average MERs as of December 31 of the calendar year shown using data Company. Asset-weighted averages for U.S. only, as of December 31, 2018. compiled from management reports of fund performance. The Canada ETF and mutual fund industry MERs were calculated by Strategic Insight and Morningstar. The mutual fund industry average MER calculations include load and no load series A, T and advisor series mutual funds and exclude ETFs, funds with performance fees, money market funds, funds with management fees charged at account level, hedge funds, index funds and LSVCC funds. Without waivers and absorptions, the Vanguard Canada-domiciled ETF average MERs would have been higher. Vanguard Investments Canada Inc. expects to continue absorbing or waiving certain fees indefinitely but may, in its discretion, discontinue this practice at any time.

* Vanguard Investments Canada Inc. introduced four new mutual fund products in early 2018.

5 Vanguard is different from the rest— and here’s how our investors benefit.

Clients Investment Private owner company Stockholders

Clients U.S.-domiciled The Vanguard Group, Inc. Economies Global of scale reach

Clients Canada-domiciled Vanguard Investments Canada Inc.

* Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc.

Why does ownership matter?

All mutual funds are owned by their unitholders—but the unitholders typically don’t own the companies that manage the funds. Instead, nearly all investment management companies are owned by third parties—either stockholders, in the case of publicly traded firms, or private interests. Of course, these owners expect to make a profit from their enterprise. Predictably, this arrangement can lead to conflicts of interest. What’s best for fund unitholders isn’t necessarily what’s best for the management companies’ owners.

Vanguard is a very different kind of investment firm—founded on the simple but revolutionary idea that a mutual fund management company should be managed in the sole interest of its funds’ investors. Rather than being publicly traded or owned by a small group of individuals, The Vanguard Group, Inc., is owned by its U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by their investors.

This unique mutual structure aligns our interests with those of our investors and drives the culture, philosophy and policies throughout the Vanguard organization worldwide. As a result, Canadian investors benefit from Vanguard’s low costs, client focus, stability and experience.

6

Recent efforts to reach investors

In the years since the global financial crisis, Vanguard has set upon a strategy to broaden and deepen relationships with investors across a wide range of funds and services.

3,000B Vanguard3,000B asset growth… 2,000B 2,000B $2,529B $2,529B 2,500 2,500 $1,635B $1,635B among U.S. advisor-served clients among U.S. retirement investors 1,500 1,500 2,0003,000B 3,000B2,000 2,000B 2,000B $2,529B $2,529B 1,5002,500 2,5001,500 1,000 1,000 $1,635B $1,635B $1,169B $1,169B 1,500 1,500 $649B $649B 1,0002,000 2,0001,000 $382B $382B 500 $327B 500 $327B 1,500500 1,500500 1,000 1,000 $96B $96B $1,169B $1,169B $43B $43B $649B $649B 1,0000 1,0000 0 0 2009 2018 2009 2018 2009$382B $382B 2018 500 2009$327B 500 $327B 2018 500 500 $96BVanguard U.S. Financial$96BVanguard Advisor Services U.S. Financial Advisor Services $43BVanguard U.S. de ned$43B contributionVanguard U.S. plans de ned contribution plans 0 Vanguard U.S.-domiciled0 Vanguard ETFs U.S.-domiciled ETFs 0 Vanguard U.S.-domiciled0 Vanguard Target Retirement U.S.-domiciled Funds Target Retirement Funds 2009 2009 2018 2018 2009 2009 2018 2018

Vanguard U.S. FinancialVanguard Advisor Services U.S. Financial Advisor Services Vanguard U.S. de ned contributionVanguard U.S. plans de ned contribution plans Vanguard U.S.-domiciledVanguard ETFs U.S.-domiciled ETFs Vanguard U.S.-domiciledVanguard Target Retirement U.S.-domiciled Funds Target Retirement Funds

among non-U.S. clients among U.S. retail clients

600B 600B 2,500B 2,500B $504B $504B $2,052B $2,052B 500 500 2,000 2,000

600B400 600B400 2,500B 2,500B 1,500 1,500 $504B $504B $2,052B $2,052B 500300 500300 2,000 2,000 1,000 $712B 1,000 $712B 200400 400200 $112B $112B 1,500 1,500 500 500 300100 300100 1,000 $712B 1,000 $712B 2000 2000 0 0 2009$112B 2009$112B 2018 2018 2009 2009 2018 2018 500 500 100 100 Source: Vanguard. Data as of December 31, 2018. 7 0 0 0 0 2009 2009 2018 2018 2009 2009 2018 2018 Vanguard investor trends...

Vanguard global AUM, index and active Vanguard Canada-domiciled ETFs

25 25 Index Equity Active $3,675M $3,857M $3,675M $3,857M Fixed income 75 75

Source: Vanguard. Data as of February 29, 2019. Source: Vanguard. Data as of February 29, 2019.

8

Our investment philosophy

Successful investment management companies base their business on a core investment philosophy, and Vanguard is no different. Our philosophy is simple, enduring and based on four key principles.

Create clear, appropriate investment goals. An appropriate investment goal should be measurable and attainable. Success should not depend upon outsize Goals investment returns, nor upon impractical saving or spending requirements.

Develop a suitable asset allocation using broadly diversified funds. A sound investment strategy starts with an asset allocation Balance suitable for the portfolio’s objective. The allocation should be built upon reasonable expectations for risk and returns, and should use diversified investments to avoid exposure to unnecessary risks.

Minimize cost. Markets are unpredictable. Costs are forever. The lower your costs, the greater your share of an investment’s return. And Cost research suggests that lower-cost investments have tended to outperform higher-cost alternatives.

Maintain perspective and long-term discipline. Discipline and perspective are the qualities that can help investors remain committed to their long-term investment Discipline programs through periods of market uncertainty.

9

Vanguard as an innovator

Vanguard has been a pioneer in the fund industry since our founding in the United States in 1975. We continue to look for new ways to reduce the cost and complexity of investing.

1975 Client ownership in the United States 1976 First index mutual fund in the United States 1977 No load: First “virtual” mutual fund company in the United States 1995 Vanguard.com, a truly virtual operation in the United States 2001 Vanguard ETFs® in the United States: Unique share-class structure 2011 Vanguard ETFs in Canada: A price disruption 2014 First all-world ex-Canada ETF 2016 Launch of Vanguard’s first actively managed ETFs in Canada 2018 Vanguard introduces four new mutual fund products for the Canadian market Vanguard launches three asset-allocation ETFs and an international high-yield dividend ETF

10 Connect with Vanguard® > vanguardcanada.ca

Commissions, management fees, and expenses all may be While this information has been compiled from proprietary and associated with investment funds. Investment objectives, non-proprietary sources believed to be reliable, no representation or risks, fees, expenses, and other important information are warranty, express or implied, is made by The Vanguard Group, Inc., contained in the prospectus; please read it before investing. its subsidiaries or affiliates, or any other person (collectively, “The Investment funds are not guaranteed, their values change Vanguard Group”) as to its accuracy, completeness, timeliness or frequently, and past performance may not be repeated. reliability. The Vanguard Group takes no responsibility for any errors Vanguard funds are managed by Vanguard Investments and omissions contained herein and accepts no liability whatsoever Canada Inc. and are available across Canada through for any loss arising from any use of, or reliance on, this material. registered dealers. Information, figures and charts are summarized for illustrative Date of publication: March 2021 purposes only and are subject to change without notice.

This material is for informational purposes only. This material is In this material, references to “Vanguard” are provided for not intended to be relied upon as research, investment, or tax convenience only and may refer to, where applicable, only The advice and is not an implied or express recommendation, offer or Vanguard Group, Inc., and/or may include its affiliates, including solicitation to buy or sell any security or to adopt any particular Vanguard Investments Canada Inc. investment or portfolio strategy. Any views and opinions expressed All investments, including those that seek to track indexes, do not take into account the particular investment objectives, are subject to risk, including the possible loss of principal. needs, restrictions and circumstances of a specific investor and, Diversification does not ensure a profit or protect against a loss thus, should not be used as the basis of any specific investment in a declining market. While ETFs are designed to be as diversified recommendation. Investors should consult a financial and/or tax as the original indexes they seek to track and can provide advisor for financial and/or tax information applicable to their greater diversification than an individual investor may achieve specific situation. independently, any given ETF may not be a diversified investment.

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