Vanguard Goes Large on Its ETF Lineup

July 31, 2003 ( - The Vanguard Group announced a dramatic expansion of its exchange-traded VIPER share lineup as well as the launch of a large-capitalization index fund and 10 sector index funds.

According to a news release from the Malvern, Pennsylvania-based mutual fund company, the 11 new sector index funds will track various domestic benchmarks developed by Morgan Stanley Capital International (MSCI). Vanguard also filed prospectus amendments with the US Securities and Exchange Commission to add exchange-traded VIPER (Vanguard Index Participation Equity Receipts) Shares to many of its existing equity index funds.

The new Vanguard products include the Vanguard Large-Cap Index Fund, which will track the MSCI US Prime Market 750 index. This index invests in a universe of stocks currently representing the largest 88% of the US market’s capitalization.

The fund will offer four share classes, including an Investor class of shares (minimum investment $3,000); an Admiral class of shares (minimum investment $250,000); an Institutional class of shares (minimum investment $10 million); and VIPER exchange-traded shares.

Vanguard is also set to launch ten funds that will track specific sectors of the MSCI US Investable Market 2500 Index, a broad measure of the US stock market. Each fund will offer an Admiral class of shares with a minimum investment of $250,000 and will also feature an exchange-traded VIPER class of shares.

The funds are:

  • Vanguard Energy Index Fund
  • Vanguard Materials Index Fund
  • Vanguard Industrials Index Fund
  • Vanguard Consumer Discretionary Index Fund
  • Vanguard Consumer Staples Index Fund
  • Vanguard Health Care Index Fund
  • Vanguard Financials Index Fund
  • Vanguard Information Technology Index Fund
  • Vanguard Telecommunication Services Index Fund
  • Vanguard Utilities Index Fund.

Finally, the investment company said it would issue exchange-traded VIPER Shares for nine existing index funds:

  • Vanguard Value Index Fund
  • Vanguard Growth Index Fund
  • Vanguard Mid-Cap Index Fund
  • Vanguard Small-Cap Index Fund
  • Vanguard Small-Cap Value Index Fund
  • Vanguard Small-Cap Growth Index Fund
  • Vanguard European Stock Index Fund
  • Vanguard Pacific Stock Index Fund
  • Vanguard Emerging Markets Stock Index Fund.

With the addition of the 20 new VIPERs, Vanguard will have 22 funds offering exchange-traded shares covering major market segments. Vanguard expects to launch the new funds and VIPER Shares this autumn. At that time Vanguard will make available more information about the new funds and VIPERs, including expense ratios.