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Written by Cinthia Murphy
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November 23, 2009 12:30 PM |
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Vanguard Monday launched seven new bond ETFs, nearly doubling its offerings in the ETF bond space.
Vanguard's move reflects ETF investors' increased interest in fixed-income. Fixed-income ETFs attracted $37 billion in net inflows through October of this year, making them the most popular asset class for new investor cash in 2009.
Investors are becoming increasingly interested in managing their fixed-income exposure, using ETFs and funds to target specific maturities and credit risks. The new Vanguard products seem designed to meet that need.
The funds, which will trade on Nasdaq, are:
| TICKER |
FUND |
BARCLAYS CAPITAL INDEX |
| VGSH |
Vanguard Short-Term Government Bond Index Fund |
U.S. 1-3 Government Float Adjusted Index |
| VGIT |
Vanguard Intermediate-Term Government Bond Index Fund |
U.S. 3-10 Government Float Adjusted Index |
| VGLT |
Vanguard Long-Term Government Bond Index Fund |
U.S. Long Government Float Adjusted Index |
| VCSH |
Vanguard Short-Term Corporate Bond Index Fund |
U.S. 1-5 Corporate Bond Index |
| VCIT |
Vanguard Intermediate-Term Corporate Bond Index Fund |
U.S. 5-10 Corporate Bond Index |
| VCLT |
Vanguard Long-Term Corporate Bond Index Fund |
U.S. Long Corporate Bond Index |
| VMBS |
Vanguard Mortgage-Backed Securities Index Fund |
U.S. MBS Float Adjusted Index |
Source: Vanguard Group
The new offerings—the first Vanguard bond funds to be listed on Nasdaq—will bring the total number of Vanguard bond index funds to 12. The funds will come with expense ratios of 0.15 percent; institutional shares will charge 0.09 percent annually.
You can read IndexUniverse.com's original coverage of the funds here.
Monday's Vanguard release on the launch can be found here.
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