New Vanguard Foreign fund

[mickeyd]

Vanguard files to launch foreign index fund

By Murray Coleman
Last Update: 2:25 PM ET Dec 15, 2006



SAN FRANCISCO (MarketWatch) -- The Vanguard Group filed Friday with the Securities and Exchange Commission to launch a new foreign index fund. The fund would track the FTSE All-World ex-USA Index, which is float-adjusted and weights stocks in both developed and emerging markets by market-cap size. The underlying benchmark covers 2,000 large-cap and mid-cap stocks in 48 countries. The new fund would offer investor, institutional and exchange-traded fund share classes.

[justin]

Wonder how this fund differs from the Total International Index they already have?

My thoughts:

Tracks FTSE index instead of MSCI indexes. Allows taxable investors to take foreign tax credit (not an option with Total International Index). Total International tracks 44 countries vs. 48 in FTSE.

Anything else?

[mickeyd]

Quote:

The new fund would offer investor, institutional and exchange-traded fund share classes.

They are not offering Admiral shares, of course TI does not have Admiral either but it is a FOF and I do not believe that any of Vanguard's FOFs offer Admiral Shares.

When TIPS was first started, it took them a few years before Admiral shares were offered, so I guess they could enhance it at a later date like they did for TIPS. I'd be interested in seeing what the ER will be compared to an ER of .31 with TI.

[Spanky]

Any idea when it will be available (other than 1Q 07)?