Vanguard Launches Nine New ETFs
It seems if Vanguard has started a war in the market by introducing nine Exchange-traded funds that are based on Standard & Poor's benchmarks.
Dan Wiener, the Editor of the Independent Adviser for Vanguard Investors, in a newsletter expressed that the move taken by the Company is a battle of expenses that would weaken the ETFs of BlackRock's iShares and State Street's Global Advisors' SPDRs.
The new Vanguard S&P 500 ETF possess an expense ratio of 0.06%, which ranked third lower than the expense ratio of 0.09% of both iShares S&P500 index ETF and the SPDR S&P 500 ETF.
Vanguard owns 55 ETFs with $113 billion in assets and captures a market share of 14%.
Paul Simon, Chief Investment Officer of Birmingham said, "We look for ETFs that are transparent, fully replicate the asset class, are low cost and provide liquidity".
The $70 million worth of State Street Global Advisors ETF is the largest in the world, lay emphasis on liquid S&P 500 names and they are ready for any competition, as stated by Jim Ross, Senior Managing Director at State Street Global Advisors.
Gus Sauter, Vanguard's Chief Investment Officer expressed that the launch of ETFs has been made to cater to the needs of the clients and to suffice the desire of financial advisors to opt for brand names. The Company had also adopted the MSCI index. He also expects the Company to introduce ETFs on Russell 1000 index.
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