Vanguard Total Stock Market VIPERs (Vanguard Index Participation Equity Receipts), the first in an expected series of Vanguard exchange-traded offerings will begin trading on the American Stock Exchange under the symbol VTI.
The offering will have an annual expense ratio of 0.15%, the lowest of any exchange-traded offering tracking the broad US stock market.
Unlike existing exchange-traded vehicles that operate as stand-alone investment products, these instruments are structured as a new share class within an existing Vanguard index fund.
In contrast to Vanguard’s conventional index fund shares, which are traded at the share’s net asset value at the end of the day, these shares can be bought and sold through a broker at any time during the trading day.
Vanguard believes that shareholders in the Fund’s traditional class of shares will benefit from a reduction in transaction costs created by more active investors who are likely to be attracted to the new class of shares and away from traditional shares.
Investors in the traditional shares can convert to VIPER Shares on May 31.