Vanguard has filed a registration statement with the U.S. Securities and Exchange Commission to launch the Vanguard Short-Term Inflation-Protected Securities Index Fund in Q4.
The new fund will track the performance of the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, a market-weighted index that measures the performance of inflation-protected public obligations of the U.S. Treasury that have a remaining maturity of less than five years. Its ETF Shares will have an estimated expense ratio of 10 basis points. Its Investor Shares sport a 20 bps expense ratio, 10 bps for the Admiral Shares, and 7 bps for the Institutional Shares. To offset the transaction costs of purchasing TIPS, the fund will assess a 25 bps purchase fee on all shares (excluding ETF shares).