Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Products July 25, 2011
Vanguard to Expand Admiral Shares
Vanguard announced that it will expand the availability of its
Admiral Shares with six additional domestic and international equity
index funds.
Reported by Sara Kelly
A total of 75 funds will now offer Admiral Shares; the six additions will feature expense ratios ranging from 0.10% to 0.21:
Fund | Admiral Shares estimated expense ratio | |
Vanguard FTSE All World Ex-US Index Fund | 0.18% |
|
Vanguard Mid-Cap Growth Index Fund | 0.10% |
|
Vanguard Small-Cap Growth Index Fund | 0.10% |
|
Vanguard Mid-Cap Value Index Fund | 0.10% |
|
Vanguard Small-Cap Value Index Fund | 0.21% |
|
Vanguard Developed Markets Index Fund | 0.12% |
|
The new shares are expected to be available for sale in late September after the standard SEC review period.
Retail clients will be able to convert their qualifying shares into the lower-priced shares of the equivalent fund at that time; otherwise, Vanguard will automatically convert qualifying accounts over the next several months. Share conversions within the same fund are tax-free.
Vanguard introduced Admiral Shares in November 2000 to recognize and encourage the cost savings associated with large and long-tenured accounts by passing along these savings to shareholders in the form of lower fund expense ratios. Roughly $520 billion, nearly one-third of Vanguard’s total fund assets, is held in Admiral Shares.
Vanguard also expects to provide new shares to institutional investors – Vanguard Institutional Plus Shares and Institutional Shares – for the Vanguard Short-Term Bond Index Fund.
Institutional Plus shares are also expected to become available for Vanguard Intermediate-Term Bond Index Fund and Vanguard Long-Term Bond Index Fund. The expense ratios are expected to be 0.05% for the new Institutional Plus Shares of these three funds and 0.07% for the new Institutional Shares in the Short-Term Bond Index Fund.