Vanguard FTSE All-World ex USA Index

According to this post on the “Diehards in the Vanguard” forum, the Vanguard FTSE All-World ex USA index funds and ETF will start trading soon. This information comes from the SEC filing here.

For the mutual fund version (ticker VFWIX), the expense ratio is 0.40%, with a purchase fee of 0.25%, and a redemption fee of 2% if sold within two months. The expected date of offering is March 8, 2007.

For the ETF version (ticker VEU), the expense ratio is 0.25%. The expected date of offering is March 2, 2007. Usual brokerage fees apply if you do not have access to a free trade program.

The mutual fund version, with the purchase fee is not appealing to me at all but the ETF version does. Compared to the iShares MSCI EAFE ETF (ticker EFA, ER 0.35%), this new ETF would cover the equity market of the entire world except the US. This means that it also includes Canada and emerging markets which EFA doesn’t. In addition, it also comes with a lower price tag than EFA.

Hopefully, this fund would have a respectable trading volume when it debuts on Friday.

1 Comment

  1. Pingback: indexfundfan @ indextown » Blog Archive » Vanguard FTSE All World Ex USA ETF debuts

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