Morningstar Awards: Best ETF Provider goes to Vanguard

Vanguard Canada's Atul Tiwari says he was ecstatic in October when his firm reduced fees on over half of their ETFs for Canadians.

Ashley Redmond 27 November, 2014 | 6:00PM
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Ashley Redmond: I'm Ashley Redmond for and I'm here with Atul Tiwari, managing director at Vanguard Canada and winner of Morningstar's ETF Provider of the Year. Congratulations Atul.

Atul Tiwari: Thank you very much Ashley. We're really proud to have won this award for the second time in a row only three years into the Canadian market. So, we're thrilled.

Redmond: Yeah, it's quite a feat, second year in a row.

Tiwari: Yes, thank you. It's a great recognition by Morningstar and I think it also provides us with some really great feedback from advisors and clients who are really embracing the Vanguard way of investing. So, we're very happy.

Redmond: You won this award last year as well. So, what are you doing at Vanguard that keeps pushing you ahead of the competition?

Tiwari: Well, Ashley, for Vanguard, it really all starts with our unique model of ownership. So, in the U.S. our investors own the funds and the ETFs, which in turn own Vanguard the company. So, we're not a public company and we're not a private company -- we're actually a mutual fund company. This uniquely and quite squarely aligns our interest with our shareholders. Those principles follow through in Canada where we basically operate on the same philosophy, the same investments principles and we continuously find ways to lower our costs for our investors.

Redmond: Low fees are so integral to your mandate. Why is that?

Tiwari: Basically, if you think about it, the lower your costs are in investing, the more that you have over time for your own goals such as retirement or saving money to pay for your kid's education. High costs eat away at your returns over time -- it compounds. So, by keeping costs low you are able to keep more for yourself over the long run.

Redmond: Part of this award recognizes extraordinary growth in the ETF industry. So, how have you grown in 2014?

Tiwari: In 2014 we've continued to build our brand awareness. We've worked very closely with advisors all across the country and quite frankly we've continued to reduce our costs. In October, we were very happy [because we] reduced the costs on over half of our ETFs for Canadians. Basically, by continuing to find efficiencies and grow scale, we'll continue to provide Canadians with more [money] that they can keep as their returns grow.

Redmond: This is an exciting time for you and I want to know when you reflect back on 2014 is there a certain moment that you're especially proud of or an accomplishment that you're really proud of?

Tiwari: Absolutely. It's all about the clients. So, for me when I go out and visit with clients and I get a chance to speak with them about their goals and their objectives and how Vanguard is meeting them -- I'll tell you that there is nothing more rewarding than hearing a client say to you, we are so happy that we are invested with you and that makes it all worthwhile.

Redmond: Fantastic. And what should investors expect from Vanguard in 2015?

Tiwari: For the most part, more of the same. We'll continue to build our brand. We'll continue to service all of our clients and advisors and three years in we're just going to kind of keep doing what we're doing because it seems to be working.

Redmond: Great. Congratulations again.

Tiwari: Thank you Ashley.

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Ashley Redmond

Ashley Redmond  Ashley Redmond is a Vancouver-based freelance writer.

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