Vanguard Goes Large on Its ETF Lineup
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.