Vanguard To Reverse Split Its S&P 500 ETF

By ETF Professor,

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Vanguard, the third-largest U.S. ETF sponsor, said it will reverse split the Vanguard S&P 500 ETF (NYSE: VOO ) on a one-for-two basis. VOO will begin trading on a split adjusted basis on October 24, 2013, said Vanguard in a statement.

Vanguard expects the split to lower the overall transaction costs to buy and sell VOO shares, according to the statement . With an expense ratio of just 0.05 percent per year, VOO is already cheaper than 95 percent of rival funds.

Those rivals include the SPDR S&P 500 (NYSE: SPY ), the largest ETF in the world by assets, and the iShares Core S&P 500 ETF (NYSE: IVV ).

Vanguard S&P 500 ETF has net assets of more than $10 billion and the Pennsylvania-based company offers 67 stock and bond ETFs with total assets of nearly $290 billion, according to the statement.

Other popular Vanguard ETFs include the Vanguard Dividend Appreciation ETF (NYSE: VIG ), the Vanguard Total Stock Market ETF (NYSE: VTI ) and the Vanguard FTSE Emerging Markets ETF (NYSE: VWO ).

For more on ETFs, click here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: IVV , SPY , VIG , VTI , VWO

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