Vanguard rolls out International Small-Cap Fund

The minimum initial investment requirement for the fund is $3,000 for Investor Shares-- with an expected expense ratio of 0.60%--and $ 5 million for institutional Shares--with an estimated expense ratio of 0.35%. The fund's ETF Shares (NYSE Arca: VSS) will be set in motion at the conclusion of the subscription period and will have an estimated expense ratio of 0.38%.

There is a 0.75% fee on purchases and redemptions of the Investor and Institutional Shares that is used to fund the transaction costs that accompany the buying and selling of foreign securities. This fee will not apply when the subscription period is still in effect.

The new fund reflects findings by Vanguard's Investment Counseling & Research group, which recently published a paper contending that the long term diversification benefits that usually correspond with international investing are enduring the global economic crisis. Vanguard's announcement is here.

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