Vanguard Expands Index Fund Offerings

May 8, 2000 ( - Plan sponsors got new index mutual fund choices Monday from Vanguard, including a social investing index fund and a new institutional fund that tracks the EAFE (Europe, Australasia, Far East) index. Vanguard also introduced a new class of institutional shares for their European Stock Index and Pacific Stock Index funds.


The new institutional funds are:

  • Vanguard Calvert Social Index Fund – designed to track the performance of the Calvert Social Index, a benchmark comprising large- and mid-cap stocks that was recently developed by the Calvert Group. (see Calvert Group Launches Social Index ). The fund will have an expense ratio of 0.12%. The Fund is expected to maintain an expense ratio of 0.25%. The minimum initial investment is $3,000. An institutional class of shares for investors with $10 million or more is offered at an expense ratio of 0.12%.
  • Vanguard Institutional Developed Markets Index Fund – structured as a “fund of funds”, the fund invests in a mix of the new institutional shares of the Vanguard European Stock Index Fund and in the Vanguard Pacific Stock Index Fund, based on their respective composition of the MSCI-EAFE Index, which was 67%/33% as of 3/31/2000. The index tracks the performance of the unmanaged Morgan Stanley Capital International-Europe, Australasia, Far East (MSCI-EAFE) Index, which includes some 1,000 stocks. The weighted average expense ratio of the fund’s underlying investments is expected to be 0.20%, though the fund itself has no operating expenses.

And improved

Vanguard has also added new institutional shares for its Vanguard European Stock Index Fund, Vanguard Pacific Stock Index Fund, and Vanguard Emerging Markets Stock Index Fund. The expense ratios for the institutional classes of shares, are as follows: European Fund, 0.18%; Pacific, 0.24%; and Emerging Markets, 0.45%.
The institutional class of shares requires a minimum investment of $10 million for all funds.
The group’s index fund roster now consists of 32 offerings.