Keep an Eye Out for These New Vanguard Funds
A look at some compelling new options that could be available this year.
Below are excerpts from recent issues of our Vanguard Fund Family Report. To view a risk-free trial issue, click here. Note that Fund Family Reports for Fidelity and American Funds are also available.
Vanguard's exchange-traded fund lineup has been hampered by a couple of glaring omissions, chief among them a lack of fixed-income and core international equity options. That could change soon, though, if the Securities and Exchange Commission approves Vanguard's recent application for fixed-income ETFs and for a total international stock index fund.
In recent months, the family filed papers with regulators seeking permission to create ETF share classes for its bond index funds: Vanguard Total Bond Market Index (VBMFX), Vanguard Short-Term Bond Index (VBISX), Vanguard Intermediate-Term Bond Index (VBIIX), and Vanguard Long-Term Bond Index (VBLTX). Vanguard also has filed a registration statement with the SEC for a new total international stock market index fund (also with an ETF share class) tracking the FTSE All-World ex USA Index. The SEC has to approve these funds before Vanguard launches them, but my guess is they'll be available this year. When they are, investors should avail themselves of these new funds. Here's why.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.