Vanguard Exchange-Traded Funds

DEFINITION of 'Vanguard Exchange-Traded Funds'

A class of ETFs offered by Vanguard and traded like any other share on the American Stock Exchange. There are presently 27 Vanguard ETFs with underlying indexes covering both individual sectors (such as materials and energy)as well as domestic and international indexes. Previously known as VIPERS, the ETFs are designed to track their underlying indexes as closely as possible and offer the increased flexibility of intraday trading.

BREAKING DOWN 'Vanguard Exchange-Traded Funds'

Vanguard looks to bring its leadership in the passive management market to the ETF space with this class of low-cost funds. Most of the underlying indexes are Morgan Stanley (MSCI) indexes, which cover not only equity sectors of the economy, but also small-, mid- and large-cap equity indexes. There are also ETFs for broad-based market indexes such as the Wilshire Composite (a unit of Dow Jones), which tracks more than 3,500 stocks.

RELATED TERMS
  1. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
  2. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  4. Stock ETF

    A security that tracks a particular set of equities, similar ...
  5. Sector ETF

    A class of exchange-traded fund that invests in the stocks and ...
  6. Intelligent ETF

    An exchange-traded fund (ETF) that employs an active investment ...
Related Articles
  1. ETFs & Mutual Funds

    The 3 Best and Most Popular Vanguard Index Funds (VTI, VXUS)

    Learn about three popular Vanguard Index Funds. See how index funds provide an easy way for investors to gain exposure to the market with low costs.
  2. ETFs & Mutual Funds

    Best 3 Vanguard Funds that Track the Top 500 Companies (VOO)

    Discover the three Vanguard funds tracking the S&P 500 Index, and learn about the characteristics and historical statistics of these funds.
  3. ETFs & Mutual Funds

    10 Markets Where Vanguard Offers the Cheapest Option (VTI, VV)

    Discover the markets where Vanguard offers the cheapest ETFs. Vanguard is the market leader in providing low-cost diversified funds for long-term investors.
  4. ETFs & Mutual Funds

    Top 3 Vanguard Managed ETFs (VTI, VIG)

    Find out which three Vanguard exchange-traded funds made into the list of best Vanguard products for new and established ETF investors.
  5. ETFs & Mutual Funds

    Buying Vanguard Mutual Funds Vs. ETFs

    Learn about the differences between Vanguard's mutual fund and ETF products, and discover which may be more appropriate for investors.
  6. Financial Advisor

    Vanguard Readies Muni Bond ETF

    Vanguard is set to roll out a muni bond ETF, the firm's first.
  7. ETFs & Mutual Funds

    The 10 Cheapest Vanguard ETFs (VOO, VTI)

    Find out the 10 cheapest Vanguard exchange-traded funds ETFs going into 2016 and how the large investment company is able to charge such low fees.
  8. ETFs & Mutual Funds

    Vanguard Total Stock Index Vs. Vanguard 500 Index Fund

    Explore detailed analyses of the Vanguard Total Stock Market and Vanguard 500 Index funds, and learn about their characteristics and suitability.
  9. Managing Wealth

    Building Your Portfolio with Vanguard ETFs and Mutual Funds

    Find out how to construct the ideal investment portfolio utilizing Vanguard's tools, resources and the company's low-cost investment products.
  10. Financial Advisor

    These Top Vanguard Funds Will Help You Diversify (VTSAX, VTIAX)

    These Vanguard funds offer diversification and low fees for retirement savers.
RELATED FAQS
  1. Do Vanguard ETFs require a minimum investment?

    Read about Vanguard exchange-traded funds (ETFs) and how there is no minimum U.S. dollar investment for them. Learn about ... Read Answer >>
  2. Are Vanguard ETFs commission-free?

    Learn how some Vanguard exchange-traded funds (ETFs) are available commission-free through multiple third-party investment ... Read Answer >>
  3. Do Vanguard ETFs pay dividends?

    Learn about Vanguard exchange-traded funds (ETFs) and how most of them typically have low expense ratios and pay dividends ... Read Answer >>
  4. Should I invest in ETFs or passive index funds?

    I am opening a Roth IRA account through Vanguard and was wondering whether to invest in ETFs, or passive in Read Answer >>
  5. Can you buy Vanguard funds through another brokerage?

    Learn about Vanguard mutual funds and exchange-traded funds (ETFs), and how investors can purchase them through multiple ... Read Answer >>
  6. What is the difference between iShares, VIPERs and Spiders?

    iShares, VIPERs and spiders each represent different exchange-traded fund (ETF) families. In other words, an individual company ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center