TORONTO, Canada – Vanguard Investments Canada Inc. today launched an educational campaign to emphasize the importance that costs play in long-term investing. At the centre of the campaign, Vanguard is selling coffee at our new Low-Cost Cafe for just 22 cents a cup at Toronto’s Union Station, or one-ninth the average price of a cup of coffee.
The cafe is designed to raise awareness among investors about the impact of costs and to help them understand how minimizing costs in their investment portfolios can potentially enable them to save more over time.
“Low costs are a critical factor in determining retirement readiness, and Vanguard believes that educating investors about cost will give them a better chance of investment success,” said Atul Tiwari, managing director of Vanguard Investments Canada Inc. “The cafe puts investment costs in real terms by equating investment costs to an everyday purchase.”
The cafe’s low-cost coffee will be available in three locations throughout the prominent, well-travelled Union Station on Front Street in Toronto from September 22 through 24. The full details appear on the low-cost cafe landing page.
In addition to the cafe, Vanguard continues to educate investors about the importance of investment cost through research, online tools, and online content.
Vanguard’s recent infographic on the high impact of low-cost investments, shows how focusing on costs can go a long way in overall portfolio returns–over a 30 year period, an investor could save $215,000 more if invested in low-cost fund verses a high-cost fund.
Vanguard’s customizable cost compare tool simulates the impact of costs over any length of time with the flexibility to compare the costs of thousands of Canadian mutual funds and ETFs.
Cost is a key pillar in Vanguard’s investment philosophy. Vanguard’s Principles for Investing Success, outlines four key fundamental tenets: 1) Create clear and appropriate goals, 2) develop a suitable asset allocation using broadly diversified funds, 3) minimize cost, and 4) maintain perspective and long-term discipline. Cost is significant because every dollar paid in management fees or trading commissions is simply a dollar less that potentially could be earning return.
