Vanguard to Launch 19 New ETFs Based on Popular Indexes This Year

Jun.24.10 | About: The Charles (SCHW)

Low-priced ETF provider Vanguard has announced that it plans to unleash 19 new funds this year, along with an ETF share class for one of the world’s largest mutual funds.

Vanguard plans to launch 19 ETFs over the course of this year, including one for its $91.1 billion Vanguard 500 Index Fund, which tracks the S&P 500. Sixteen of the funds will be based on U.S. indexes. Expense ratios for the new funds will range from 0.06% to 0.35%.

Other ETFs the provider plans to launch this year include:

  • Various S&P funds: S&P MidCap 400, S&P SmallCap 600, Russell 1000, Russell 2000
  • A global real estate fund
  • Municipal bond funds

None of these products are new to the market – all have been previously covered by other ETFs. But where Vanguard may get the edge is in its competitive pricing, which is among the lowest in the industry. However, Schwab (NYSE:SCHW) recently lowered fees on six of its eight ETFs, so there’s some heady competition taking place.

In other news, Vanguard’s commission-free trading on its 46 existing ETFs has proven to be a hit. Last month, trading activity by Vanguard brokerage customers surged 150 % year-over-year. The commission-free setup has also lured new clients: its brokerage business saw 90% growth in May, reports the Associated Press.