Valley Forge, Penn.-based Vanguard has started two new mid-cap funds to plug the gap between its  exiting large- and small-cap lineup,  the company announced Thursday.

Both new funds--one aimed at growth and the other designed as a value fund, will have exchange-traded shares as well.

Chief Investment Officer Gus Sauter noted that this completes the company's goal of having funds for each of Chicago-based fund-rater, Morningstar's, nine style boxes.

Linking ETFs to traditional funds is uncommon, but in this case, makes sense for the firm, said Saunders, who would not recommend one class over the other.

The house of Jack Bogle, Vanguard has long been indexing funds, but the company only launched its first ETF in 2001, giving competitors a lead on amassing assets.

Vanguard also announced that still pending is an application with the Securities and Exchange Commission for a high dividend yield equity fund. 

Investors can expect the company to launch as many as seven more ETFs soon, and continue to expand the ETF class shares linked to its mutual funds.

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