Vanguard Launches Russell-Based ETFs
Today’s rollout follows by about two weeks the launch of the Vanguard S&P 500 ETF (NYSEArca: VOO) and eight other equity ETFs based on S&P indexes. The company’s plans are aimed at having a broad lineup of Vanguard products that give different advisers who favor different indexes the tools they need.
In keeping with Vanguard’s aggressive stance on expenses, the new funds carry annual expense ratios ranging from 0.12 percent to 0.20 percent; in other words, priced to undercut its main competitor, iShares.
Rick Genoni, the head of ETF product management at Vanguard, said in a telephone interview today that his firm’s expansion into the heart of the ETF marketplace is designed to provide uniformity for investors building long-term allocations.
“If you’re using Russell products to gain exposure to the
Genoni argued that mixing benchmarks in a single portfolio can result in unintended consequences for investors.
“That can create issues—either underlap or overlap in the markets. It’s critically important to align the underlying benchmarks.”
The new Russell-based funds, their tickers and their annual expense ratios are:
- Vanguard Russell 1000 ETF (NasdaqGM: VONE), 0.12 percent
- Vanguard Russell 1000 Value ETF (NasdaqGM: VONV), 0.15 percent
- Vanguard Russell 1000 Growth ETF (NasdaqGM: VONG), 0.15 percent
- Vanguard Russell 2000 Index Fund (NasdaqGM: VTWO), 0.15 percent
- Vanguard Russell 2000 Value Index Fund (NasdaqGM: VTWV), 0.20 percent
- Vanguard Russell 2000 Growth Index Fund (NasdaqGM: VTWG), 0.20 percent
- Vanguard Russell 3000 Index Fund (NasdaqGM: VTHR), 0.15 percent
Investors have fewer—but better—choices.
Sometimes what’s behind a very high dividend yield is truly surprising.
For VIX-related ETFs to work as that ‘magical’ hedge, you have to time the market. Good luck with that.
But this new product is different than other euro-hedged funds.