Leave it to
, one of the exchange traded fund (
) industry's low-price leaders, to take on the first and largest
ETF in the world - the
SDPRs (NYSEArca: SPY)
- with its newest ETF.
Vanguard launched nine brand-new ETFs this morning, but the one
that's making the biggest splash with industry watchers is the
Vanguard S&P 500 ETF (NYSEArca: VOO)
. The provider will challenge the long-standing SPY on price,
charging 0.06% vs. 0.09% for SPY. Naturally, the industry is
watching to see whether VOO can nab some of SPY's investors. SPY
has about $68 billion in assets, making it the industry's largest
The Case for Large-Cap ETFs.
In addition to VOO, Vanguard also launched:
Vanguard S&P 500 Value ETF (NYSEArca: VOOV),
Vanguard S&P 500 Growth ETF (NYSEArca:
Vanguard S&P Mid-Cap 400 ETF (NYSEArca: IVOO
Vanguard S&P Mid-Cap 400 Value ETF (NYSEArca:
Vanguard S&P Mid-Cap 400 Growth ETF (NYSEArca:
Vanguard S&P Small-Cap 600 ETF (NYSEArca: VIOO
Vanguard S&P Small-Cap 600 Value ETF (NYSEArca:
Vanguard S&P Small-Cap Growth ETF (NYSEArca:
Vanguard, as always, is competing on low prices
, something it has always set out to do. It will be interesting to
see if VOO catches on with advisors and lures them away from SPY.
There's something in the SPDR brand and it has billions in assets.
Vanguard is clearly hoping to chip away at that from an expense
standpoint while still providing liquidity. [
Where You Can Go for Cheap ETF Trades.
The question will be whether Vanguard can keep spreads tight and
accurately track the S&P 500 index.
For more stories about new ETFs,
visit our new ETF category