Vanguard has launched a low-cost dividend fund called the Vanguard Dividend Appreciation Index Fund. The fund offers traditional investor and exchange-traded low-cost share classes.

The fund seeks to provide long-term growth of capital and increasing income, and will use the Mergent Dividend Achievers Select Index as its benchmark.

For taxable accounts, IRAs and custodial accounts, the minimum initial investment is $3,000; for education savings accounts the minimum initial investment is $2,000.

As part of its goal to expand its exchange-traded fund offerings, Vanguard has also filed a registration statement with the Securities and Exchange Commission for two new index funds. The Vanguard Mid-Cap Value Index Fund and the Vanguard Mid-Cap Growth Index Fund will also both offer investor shares and exchange-traded shares.

"We are committed to expanding our suite of ETFs to include broad market, style, sector and specialty funds with costs that are considerably lower than many competing products," said Vanguard CIO Gus Sauter.

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