Vanguard Bond Fund Joins Admiral Ranks

By Staff Writer

June 13, 2005 at 08:00 PM

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Vanguard Group on June 10, 2005, introduced a low-cost version of the $9-billion Vanguard Inflation Protected Securities (VIPSX), and a new fund that invests in eight other Vanguard funds.

The fund company began offering Admiral class shares of the Inflation Protected Securities fund. Those shares feature lower expenses than investor class shares.

The new version of the fund has an expense ratio of 0.11%, compared to 0.17% for investor shares, according to Vanguard. The fund invests in inflation-protected bonds with an average maturity of 7 to 20 years. The securities are issued by the U.S. Treasury and government agencies, and domestic corporations.

The company also debuted its Diversified Equity fund, a so-called fund of funds.

The funds held by Diversified Equity, which include Vanguard Windsor/Inv (VWNDX), and Vanguard Explorer (VEXPX), buy stocks of small, mid-sized and large companies. Diversified Equity will keep 20% of its assets in holdings in Vanguard Growth & Income/Inv (VQNPX). Its stakes in the other funds will range from 5% to 15%.

Vanguard said Diversified Equity will have an expense ratio of 0.44%. The fund requires minimum initial investments of $3,000 for regular accounts, and $1,000 for individual retirement accounts.

Contact Bob Keane with questions or comments at: .

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