Vanguard is set to begin trading the “Vanguard S&P 500 ETF” (NYSE:VOO) tomorrow September 9th. The Vanguard 500 Index Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. The new offering will be the ETF version of its flagship Vanguard 500 Index fund. The expense ratio for this new Vanguard S&P 500 ETF is 0.06%, which would undercut iShares S&P 500 Index Fund (NYSE:IVV) and SPDR S&P 500 ETF (NYSE:SPY) which both have expense ratios of 0.09%.

Primary Investment Strategies

The Fund employs a “passive management”—or indexing—investment approach designed to track the performance of the Standard & Poor‘s 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index.