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Vanguard Unveils New Index Funds and ETFs
Sep 17, 2010 (Close-Up Media via COMTEX) --
Vanguard, a provider of low-cost index funds, introduced eight new index mutual funds and nine new exchange-traded funds (ETFs) based on S&P domestic stock benchmarks.
According to a release, among the new offerings are ETF shares of Vanguard's flagship Vanguard 500 Index Fund, an index mutual fund for individual investors with $86.8 billion in net assets (source: Lipper, Inc.). Vanguard S&P 500 ETF features an expense ratio of 0.06 percent, which is the lowest expense ratio for an ETF based on the S&P 500 Index (source: Morningstar, Inc.).
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.
"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 advisors 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.
Vanguard noted that its $23 billion in ETF net cash flow through August led the industry. Cash flow into Vanguard's equity ETFs has been particularly strong, accounting for 74 percent of Vanguard's total ETF cash flow and 51 percent of the industry's equity ETF positive cash flow (source: Bloomberg). Vanguard's ETF assets under management have jumped 60 percent since August 2009, rising from $71 billion to $113 billion.
Vanguard is an investment management companies and a provider of company-sponsored retirement plan services. Vanguard manages nearly $1.4 trillion in U.S. mutual fund assets. Vanguard offers more than 160 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
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