Exchange-Traded funds

Vanguard ETFs® offer distinct advantages

Vanguard's ETF approach is grounded in more than three decades of indexing experience.

Vanguard ETFs are share classes of our index funds, a patented approach that provides economies of scale and helps reduce costs. With a 0.15% Vanguard ETF average expense ratio1 versus a 0.58% average expense ratio for the ETF industry2, you capture more of the market's returns. Whether through benchmark tracking, cost controls, or benchmark construction and selection—Vanguard constantly seeks ways to perfect our indexing strategies to benefit investors.

1 The Vanguard ETF average expense ratio reflects the expense ratios reported in each ETF's current prospectus.
2 Source: Lipper, a Thomson Reuters Company, as of December 31, 2012.


ETFs costs chart

Equity ETFs »

Value Blend Growth
Large 5 7 4
Med 2 3 2
Small 3 3 3
Int'l - 8 1
 
Sector 11

Fixed income ETFs »

Short Inter Long
Trsy/Agcy 3 4 3
Inv grd 1 1 1
Below inv grd - - -
Muni - - -
 
Int'l 2

Also of interest

Debating the institutional appeal of ETFs

 

Notes:

  • Vanguard ETF Shares are not redeemable with the issuing Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
  • All ETF products are subject to risk, which may result in the loss of principal. Prices of mid- and small-cap ETFs often fluctuate more than those of large-cap ETFs. International ETFs involve additional risks, including currency fluctuations and the potential for adverse developments in specific countries or regions. ETFs that invest in emerging markets are generally more risky than those that invest in developed countries. Sector ETFs are subject to sector risks and nondiversification risks, which may result in performance fluctuations that are more extreme than fluctuations in the overall stock market. Bond ETFs are subject to interest rate, credit, and inflation risk.

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