Vanguard introduced seven equity index funds and exchange-traded funds on Wednesday based on Russell domestic stock benchmarks.
According to the Valley Forge, Pa.-based mutual fund behemoth, the new offerings feature ETF and institutional shares, and provide exposure to the value, growth and blend segments of the large-cap Russell 1000 Index and small-cap Russell 2000 Index. A broad market fund and ETF seeking to track the Russell 3000 Index are also being offered.
"Russell benchmarks are well-constructed and well-recognized, and meet Vanguard's 'best practice' standards for index construction. Institutional investors, consultants, financial advisors, and others with a preference for Russell indexes now have low-cost Vanguard optionsto consider," said Vanguard Chairman and CEO Bill McNabb, in a prepared statement.
The new Vanguard Russell ETFs will have an average expense ratio of 0.16%, which it touts as considerably lower than the 0.23% average expense ratio of competing ETFs, according to Morningstar.
The latest announcement comes soon after Vanguard launched nine ETFs based on S&P benchmarks earlier this month, including ETF Shares of the first mutual index fund for individual investors, the $92 billion Vanguard 500 Index Fund.
