Vanguard launches new ETFs

Is this a symbolic product launch or what: Vanguard will soon launch a new exchange traded fund (ETF) based on its Vanguard 500 index fund, which was its very first index fund for individual investors. ETFs are not going to seriously threaten the index fund market soon. But in terms of mind share and media share, ETFs are certainly the rival of index funds right now. The category remains hot, attracting lots of entrepreneurial and other attention. More customers seem to be catching the wave.

Certainly, Vanguard's betting on the product category. It is expanding its line-up of ETFs, launching 20 new ones. Fortune notes the launch pressures its rivals, which have been cutting fees in advance. Charles Schwab cut expense ratios and removed commissions on all of its ETFs last year. In February, Fidelity "stepped up its game by waiving fees on 25 iShares ETFs. Vanguard, waived fees for its brokerage customers last month.

Vanguard seems poised to make a run at the two big names in the industry, State Street and iShares. It's new Vanguard 500 ETF will charge just 0.06 percent. That's the lowest yet for an S&P 500 ETF.

For more:
- here's the article

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