Vanguard has filed a registration statement with the Securities and Exchange Commission for seven new bond index funds and ETFs, to complement its array of low-cost, actively managed fixed income funds, as well as five existing bond index funds and ETFs.
Reportedly, the new offerings will bring the total number of Vanguard bond index funds to 12. The company has said that the funds will offer ETF shares and signal shares with expected expense ratios of 0.15%, and institutional shares with an expense ratio of 0.09%. The funds are expected to be available for purchase in late 2009.
The new funds are: Vanguard Short-Term Government Bond, Vanguard Intermediate-Term Government Bond Index Fund, Vanguard Long-Term Government Bond Index, Vanguard Short-Term Corporate Bond Index Fund, Vanguard Intermediate-Term Corporate Bond Index Fund, Vanguard Long-Term Corporate Bond Index Fund and Vanguard Mortgage-Backed Securities Index Fund.
Bill McNabb, president and CEO, Vanguard, said: “Financial advisors and institutions want to construct broadly diversified fixed income portfolios, while retaining the ability to emphasize particular sectors or durations. Working in concert, our broad-based bond index funds and these new, more targeted funds can help to achieve this goal.”
Vanguard, headquartered in Valley Forge, Pennsylvania, is an investment management company and a provider of company-sponsored retirement plan services.
