Products September 9, 2010

Vanguard Introduces Index Funds and ETFs Based on S&P Benchmarks

September 9, 2010 (PLANSPONSOR.com) – Vanguard has introduced eight new index mutual funds and nine new exchange-traded funds (ETFs) based on S&P domestic stock benchmarks.
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Among the new offerings are ETF shares of Vanguard’s flagship Vanguard 500 Index Fund. Vanguard S&P 500 ETF (ticker: VOO) features an expense ratio of 0.06%, according to a press release. 

In addition to Vanguard S&P 500 ETF, Vanguard’s ETF family will expand to 55 offerings with the introduction of eight new equity funds and ETFs targeting the growth and value segments of the S&P 500 Index and the growth, value, and blend segments of the S&P MidCap 400 and SmallCap 600 Indexes.  

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“The new Vanguard index funds and ETFs offer our trademark low costs and tax efficiency, and aim for the utmost tracking precision. They will appeal to financial advisers and institutional investors seeking to build portfolios based on S&P benchmarks. In particular, the new ETFs will offer additional choices to investors and help Vanguard continue to build momentum in the ETF marketplace,” said Vanguard Chairman and CEO Bill McNabb, in the announcement.  

Vanguard also said that in the coming months, it plans to introduce 11 additional index funds with ETF Shares. On the equity side, Vanguard will add a suite of seven funds with ETF Shares to offer exposure to value, growth, and blend segments of the U.S. stock market based on the large-cap Russell 1000 Index series and the small-cap Russell 2000 Index series. A broad market fund and ETF seeking to track the Russell 3000 Index will also be offered.

On the bond side, Vanguard will offer three new municipal bond index funds with traditional and exchange-traded shares, tracking benchmarks in the S&P National AMT-Free Municipal Bond Index series. The expense ratio for Vanguard’s new municipal ETFs is estimated to be 0.12%.

Vanguard has also filed for a new real estate fund, which will be benchmarked to the S&P Global ex-U.S. Property Index. Vanguard Global ex-U.S. Real Estate Index Fund will offer Investor Shares, Institutional Shares, Signal Shares, and ETF Shares.

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