Vanguard, long known for its index funds and selling direct to consumers, has been developing exchange-traded funds that many believe are specifically targeted to brokers and financial advisers--a departure in distribution strategy, MarketWatch reports.

Indeed, Paul Lohrey, a principal with the company, said demand for ETFs from financial advisers has been rising, although sales to individuals still dominate the company's fund flows. Over the past two years, Vanguard has added staff to reach intermediaries, he added.

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