Vanguard has launched a new Vanguard Strategic Small-Cap Equity Fund, and has announced that the subscription period for the fund began yesterday.
During the subscription period, the fund will be investing in money market instruments for the purpose of accumulating sufficient assets to construct a diverse portfolio.
The fund will try to provide long-term capital appreciation by investing in small-cap domestic stocks and the Morgan Stanley Capital International U.S. Small-Cap 1750 Index.
"The new Strategic Small-Cap Fund reflects our growing focus on active quantitative equity management strategies," said Vanguard CIO Gus Sauter. "During the past 15 years, we have built a strong team of investment professionals to develop our models and manage an increasing number of portfolios."
The new fund will require a minimum initial investment of $3,000 for regular and IRA accounts. The expense ration is 0.40%.
James P. Stetler, a principal and portfolio manager in Vanguard's Quantitative Equity Group, will manage the fund.