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Vanguard asset allocation ETFsInvesting made simpleVanguard asset allocation ETFs pack a globally diversified portfolio into a singlelow-cost fund. Simple yet sophisticated, they embody our four principlesfor investing success: Goals, Balance, Cost and Discipline.GoalsVanguard asset allocation ETFs offer five distinct asset mixes for arange of investment goals and risk preferences.VCIPVCNSVBALVGROVEQTConservativeIncome ETFPortfolioConservativeETF PortfolioBalancedETF PortfolioGrowth ETFPortfolioAll-EquityETF PortfolioLess riskEquityFixed incomeInvestor risk profileMore risk

BalanceThe ETFs focus on asset allocation becauseit is the key driver of portfolio returns—and range of returns over time.Portion of portfolio return patternsthat are explained by asset allocation186%Higher equity allocations have the potentialfor higher returns—and greater losses237.9%30.0%22.6%Highestcalenderyear returnLowestcalendaryear %40%20%0%Fixedincome

Each ETF invests in a different blendof core Vanguard ETFs , providing broadglobal diversification across andwithin asset classes.CanadianequityCanadianfixed incomeVABVCNU.S. equityVBUVUNVBGVIUDevelopedex-North AmericaequityVEEU.S. fixedincome (CADhedged)Global ex-U.S.fixed income(CAD hedged)Emergingmarkets equityCostVanguard asset allocation ETFs offer asignificant cost advantage.Average annual management fees322 bpsVanguard asset allocation ETFs74 bpsIndustry global balanced funds

Lower costs can support higher returns.10-year annualizedreturnGlobal balanced fund returns relativeto management fee410%500.0%1.0%2.0%3.0%Management feeDisciplineThe ETFs also provide embeddeddiscipline through automatic rebalancing,keeping risk levels on target.Portfolios that aren't rebalanced tend todrift from their target allocation5Final equityallocation:67%Equity allocation70 %62%6050200620092012Portfolio rebalancedPortfolio never rebalancedTarget equity allocation20152017

Bottom lineVanguard asset allocation ETFs embody ourfour principles of investing success in onesimple, low-cost solution.For more on the topicYou can learn more about Vanguardasset allocation ETFs, and theresearch on which this infographicis based, at vanguardcanada.ca.1 Data cover the period January 1, 1990, to June 30, 2016. We calculated the adjusted R-squared represented by the percentage of actual-returnvariation explained by policy-return variation. Percentages shown represent the median observation from the distribution of percentage of returnvariation explained by asset allocation for balanced funds for 303 Canadian balanced funds. For more details, see our research Vanguard asset allocationETFs: A simple yet sophisticated approach to portfolio construction.2 Data cover the period August 1, 2000, to December 31, 2017. For each asset allocation, the target equity weights are 30% FTSE Canada All Cap Index,37.5% CRSP US Total Market Index, 25% FTSE Developed All Cap ex NA Index, and 7.5% FTSE Emerging Markets All Cap Index. The target bond weightsare 58.7% Canadian Aggregate Bond Index, 18% US Aggregate Bond Index (CAD-hedged), and 23.3% Global ex-US Aggregate Bond Index (CAD-hedged).All returns are in Canadian dollars. Source: Vanguard, using data from Morningstar, Inc.3 The Vanguard management fee is equal to the fee paid by the Vanguard ETF to Vanguard Investments Canada Inc. and does not include applicable taxesor other fees and expenses of the Vanguard ETF . For any Vanguard fund which invests in underlying Vanguard fund(s), there shall be no duplication ofmanagement fees chargeable in connection with the Vanguard fund and its investment in the Vanguard fund(s). The industry figure is the asset-weightedaverage management fee for F-series funds in the CIFSC Global Neutral Balanced category, as of December 2017 (Source: Strategic Insight from InvestorEconomics Insights, September 2018).4 Data cover the period January 1, 2008, to December 31, 2017. All returns are in Canadian dollars. Sources: Vanguard calculations, using data fromMorningstar, Inc.5 Data cover the period January 1, 2006, to December 31, 2017. The initial equity allocations for both portfolios were 30% FTSE Canada All Cap Index,37.5% CRSP US Total Market Index, 25% FTSE Developed All Cap ex NA Index and 7.5% FTSE Emerging Markets All Cap Index. The initial bondallocations for both portfolios were 58.7% Canadian Aggregate Bond Index, 18% US Aggregate Bond Index (CAD-hedged) and 23.3% Global ex-USAggregate Bond Index (CAD-hedged). The rebalanced portfolio is returned to the initial allocations at the end of each June and December of each year.All returns are in Canadian dollars. Source: Vanguard calculations, using data from Morningstar, Inc.

Connect with Vanguard vanguardcanada.caImportant information:Commissions, management fees, and expenses all may be associated with investmentfunds. Investment objectives, risks, fees, expenses, and other important information arecontained in the prospectus; please read it before investing. Investment funds are notguaranteed, their values change frequently, and past performance may not be repeated.Vanguard funds are managed by Vanguard Investments Canada Inc. and are availableacross Canada through registered dealers.This material is for informational purposes only. This material is not intended to be relied upon asresearch, investment, or tax advice and is not an implied or express recommendation, offer orsolicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Anyviews and opinions expressed do not take into account the particular investment objectives, needs,restrictions and circumstances of a specific investor and, thus, should not be used as the basis of anyspecific investment recommendation.Please consult your financial and/or tax advisor for financial and/or tax information applicable to yourspecific situation.Information, figures and charts are summarized for illustrative purposes only and are subject tochange without notice.This material does not constitute an offer or solicitation and may not be treated as an offeror solicitation in any jurisdiction where such an offer or solicitation is against the law, or to anyone towhom it is unlawful to make such an offer or solicitation, or if the person making the offer orsolicitation is not qualified to do so.All investments, including those that seek to track indexes, are subject to risk, including the possibleloss of principal. Diversification does not ensure a profit or protect against a loss ina declining market.London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank RussellCompany ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc.("FTSE TMX"). All rights reserved. "FTSE ", "Russell ", "MTS ", "FTSE TMX " and "FTSE Russell"and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of theLondon Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell underlicense. All information is provided for information purposes only. No responsibility or liability can beaccepted by the London Stock Exchange Group companies nor its licensors for any errors or for anyloss from use of this publication. Neither the London Stock Exchange Group companies nor any of itslicensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly,either as to the results to be obtained from the use of the FTSE Indexes or the fitness or suitabilityof the Indexes for any particular purpose to which they might be put. 2019 Vanguard Investments Canada Inc.All rights reserved.INAGN CA 032019

Investing made simple Vanguard asset allocation ETFs Vanguard asset allocation ETFs pack a globally diversi ed portfolio into a single low-cost fund. Simple yet sophisticated, they embody our four principles for investing success: Goals, Balance, Cost and Discipline. Vanguard asset allocation ETFs offer ve distinct asset mixes for a