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Vanguard Exchange-Traded Funds

What is 'Vanguard Exchange-Traded Funds'

A class of ETFs offered by Vanguard and traded like any other share on the American Stock Exchange. There are presently 27 Vanguard ETFs with underlying indexes covering both individual sectors (such as materials and energy)as well as domestic and international indexes. Previously known as VIPERS, the ETFs are designed to track their underlying indexes as closely as possible and offer the increased flexibility of intraday trading.

Explaining 'Vanguard Exchange-Traded Funds'

Vanguard looks to bring its leadership in the passive management market to the ETF space with this class of low-cost funds. Most of the underlying indexes are Morgan Stanley (MSCI) indexes, which cover not only equity sectors of the economy, but also small-, mid- and large-cap equity indexes. There are also ETFs for broad-based market indexes such as the Wilshire Composite (a unit of Dow Jones), which tracks more than 3,500 stocks.


Further Reading


Interfamily competition on index tracking: The case of the vanguard ETFs and index funds
link.springer.com [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

Exchange-traded funds: A new investment option for taxable investorsExchange-traded funds: A new investment option for taxable investors
pubs.aeaweb.org [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

Exchange-traded funds 101 for economistsExchange-traded funds 101 for economists
www.aeaweb.org [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

Index mutual funds and exchange-traded fundsIndex mutual funds and exchange-traded funds
jpm.pm-research.com [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

Performance comparison between exchange-traded funds and closed-end country fundsPerformance comparison between exchange-traded funds and closed-end country funds
www.sciencedirect.com [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

Exchange traded funds: Performance and competitionExchange traded funds: Performance and competition
papers.ssrn.com [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

An analysis of the spillover effects of exchange-traded fundsAn analysis of the spillover effects of exchange-traded funds
www.tandfonline.com [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …

Conventional mutual index funds versus exchange-traded fundsConventional mutual index funds versus exchange-traded funds
www.sciencedirect.com [PDF]
… Data used involve the Vanguard funds and results indicate that ETFs and index funds present, on … the market.' These investors' preferences led to the growth of index funds, making index … such features in a product led to the development of Exchange traded funds (ETFs) with a …



Q&A About Vanguard Exchange-Traded Funds


Is it possible for investors to trade these shares throughout the day or only at certain times during the day (such as premarket, regular hours, after hours)?

It is possible for investors to trade these shares throughout the day or only at certain times during the day (premarket, regular hours, after hours).

What does an ETF hold?

An ETF holds assets such as stocks, bonds, currencies, and/or commodities such as gold bars.

Are there different types of indexes that can be tracked by an index fund?

Yes, there are different types of indexes that can be tracked by an index fund.

How many Vanguard ETFs are there?

There are 27 Vanguard ETFs.

What is an exchange-traded fund?

An exchange-traded fund (ETF) is a type of investment fund and exchange traded product, i.e. they are traded on stock exchanges.

Do these ETFs follow market capitalization or equal weighting strategies to determine which companies to invest in?

These ETFS follow market capitalization strategies to determine which companies to invest in.

What do you mean when you say that these ETFs cover both individual sectors and international markets?

The different sectors include materials and energy while international markets include domestic and international indexes.

What is Vanguard Exchange-Traded Funds?

Vanguard Exchange-Traded Funds are a class of ETFs offered by Vanguard and traded like any other share on the American Stock Exchange.

What does the phrase "low-cost funds" mean in this context?

Low cost funds means that they have low fees associated with them. They also track their underlying indexes closely as well as offer intraday trading capabilities.

How do ETFs operate?

Most ETFs have an arbitrage mechanism designed to keep it trading close to its net asset value although deviations can occasionally occur. Most ETFs are index funds.

Which type of index tracks the S&P 500 Index?

The S&P 500 Index tracks the Standard & Poor's 500 Index which measures the performance of 500 large companies in the United States stock market based on their market capitalization (the total dollar value). This is one example of how you could use your knowledge about indexes to answer questions correctly on this section!

Are all of the underlying indexes created by Morgan Stanley?

Yes, most of them are.