The new exchange-traded fund (ETF) features an expense ratio of 0.28%, which is the lowest expense ratio among dividend-oriented ETFs, according to the announcement.
Vanguard Dividend Appreciation Index Fund seeks to provide competitive long-term growth of capital and increasing income, the announcement said. The fund’s target benchmark is the Mergent Dividend Achievers Select Index.
In addition, Vanguard has filed a registration statement with the Securities and Exchange Commission (SEC) for two new equity index funds, Vanguard Mid-Cap Value Index Fund and Vanguard Mid-Cap Growth Index Fund. The new funds will offer both Investor Shares and exchange-traded shares.
Vanguard Mid-Cap Value Index Fund will seek to track the performance of the MSCI US Mid Cap Value Index, and the Vanguard Mid-Cap Growth Index Fund will seek to track the performance of the MSCI US Mid Cap Growth Index.
The three new funds will be managed by Vanguard Quantitative Equity Group.