Vanguard Introduces Series of Low-Cost Index Mutual Funds and ETFs

The 17 new funds are based on S&P Indexes

As was expected, Vanguard has filed registration statements with the SEC to introduce a broad range of new index mutual funds and ETFs based on Standard & Poor's domestic stock indexes, including eight mutual funds and nine ETFs, notably an ETF of the Vanguard 500 Index Fund. The Vanguard S&P 500 ETF (VOO) has an expense ratio of 0.06%, which the company, citing Morningstar figures, said was the lowest-cost ETF on the market based on the S&P 500 index.

With the new entries, Vanguard now offers 55 ETFs. AUM in Vanguard's ETF have risen 60% since August 2009, the company said, rising from $71 billion to $113 billion

Vanguard also said it plans to introduce 11 more index funds with ETF shares "in the coming months," seven of which will be in value, growth and blend equities, three municipal bond index funds, and a real estate fund.

The new mutual funds are:

Fund

Index

ETF Shares

Institutional Shares

Investor Shares

Admiral Shares

Signal

Shares

Vanguard S&P 500 ETF (new) / Vanguard 500 Index Fund (existing)

S&P 500

0.06%

0.05%*

0.18%

0.07%

0.07%

Vanguard S&P 500 Value Index Fund

S&P 500 Value

0.15%

0.08%

Vanguard S&P 500 Growth Index Fund

S&P 500 Growth

0.15%

0.08%

Vanguard S&P Mid-Cap 400 Index Fund

S&P 400

0.15%

0.08%

Vanguard S&P Mid-Cap 400 Value Index Fund

S&P 400 Value

0.20%

0.08%

Vanguard S&P Mid-Cap 400 Growth Index Fund

S&P 400 Growth

0.20%

0.08%

Vanguard S&P Small-Cap 600 Index Fund

S&P Small-Cap 600

0.15%

0.08%

Vanguard S&P Small-Cap 600 Value Index Fund

S&P Small-Cap 600 Value

0.20%

0.08%

Vanguard S&P Small-Cap 600 Growth Index Fund

S&P Small-Cap 600 Growth

0.20%

0.08%

*Institutions are eligible for the Vanguard Institutional Index Fund, which tracks the S&P 500 Index.

The new ETFs are:

Vanguard ETF

Ticker

Vanguard S&P 500 ETF

VOO

Vanguard S&P 500 Value Index ETF

VOOV

Vanguard S&P 500 Growth Index ETF

VOOG

Vanguard S&P Mid-Cap 400 Index Fund

IVOO

Vanguard S&P Mid-Cap 400 Value Index ETF

IVOV

Vanguard S&P Mid-Cap 400 Growth Index ETF

IVOG

Vanguard S&P Small-Cap 600 Index ETF

VIOO

Vanguard S&P Small-Cap 600 Vakue Index ETF

VIOV

Vanguard S&P Small-Cap 600 Growth Index ETF

VIOG

View the complete Vanguard media report on the new mutual funds and ETFs via this PowerPoint slide.

In his September 2010 ETF Advisor column for Investment Advisor, Vaughan Scully of S&P writes about the Vanguard plans and other new ETFs.

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