Vanguard has filed a registration statement with the Securities and Exchange Commission to offer seven bond index funds and seven bond exchange-traded funds, expanding its current roster of five offerings apiece to 12.
The new offerings range from short-term to long-term government and corporate bonds.
Vanguard will charge retail investors 15 basis points and institutional investors nine basis points for the funds, which it expects to bring to the market by the end of the year.
“Vanguard has a quarter century of experience in bond index management, and expanding our range of funds is a logical extension of our capabilities,” said Bill McNabb, president and CEO of Vanguard.
“Financial advisers and institutions want to construct broadly diversified fixed income portfolios, while retaining the ability to emphasize particular sectors or durations,” McNabb added. “Working in concert, our broad-based bond index funds and these new, more targeted funds can help to achieve this goal.”
McNabb noted that as the financial markets begin to emerge from the instability of the last 18 months, investors have developed a keen interest in stock and bond indexing as a low-cost way to diversify their portfolios. In this period, Vanguard has attracted $70 billion in new assets, most of it going to its indexed products.