Vanguard Exchange-Traded Funds

AAA

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.

INVESTOPEDIA EXPLAINS '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. John Neff

    One of the most acclaimed mutual fund investors and portfolio ...
  2. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  3. Benchmark

    A standard against which the performance of a security, mutual ...
  4. Index Fund

    A type of mutual fund with a portfolio constructed to match or ...
  5. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  6. John Bogle

    The founder of The Vanguard Group, and a major figure in the ...
Related Articles
  1. Is it possible to invest in an index?
    Investing

    Is it possible to invest in an index?

  2. Introduction To Exchange-Traded Funds
    Mutual Funds & ETFs

    Introduction To Exchange-Traded Funds

  3. Who's in charge of managing exchange-traded ...
    Investing

    Who's in charge of managing exchange-traded ...

  4. What is the difference between iShares, ...
    Investing

    What is the difference between iShares, ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center