Vanguard today announced that Vanguard 500 Index Fund is planning to
declare a 1-for-2 reverse share split of its exchange-traded fund (ETF)
shares. Conventional shares of the fund will not be affected.
Shares of Vanguard S&P 500 ETF (ticker: VOO) will be offered on a
split-adjusted basis on October 24, 2013. Vanguard expects the split to
lower the overall transaction costs to buy and sell VOO shares.
The reverse split will increase the price per share with a proportionate
decrease in the number of shares outstanding. The total market value of
the shares outstanding will not be affected, except with respect to the
redemption of fractional shares.
As a result of the split, VOO shareholders could potentially hold
fractional shares. These will be redeemed for cash and sent to the
broker of record, which may result in the realization of modest taxable
gains or deductible losses for some shareholders. Otherwise, the reverse
split will not result in a taxable transaction.
Vanguard S&P 500 ETF has net assets of more than $10 billion and an
expense ratio of 0.05%. The average expense ratio of Vanguard ETFsTM
is 0.15%—less than one-third the industry average of 0.58% (source:
Lipper, a Thomson Reuters Company).
Vanguard is a leader in the ETF marketplace, offering 67 stock and bond
ETFs with total assets of nearly $290 billion.
About Vanguard
Vanguard, headquartered in Valley Forge, Pennsylvania, is the world’s
largest mutual fund company and one of the world’s largest investment
management companies, managing more than $2.5 trillion in global assets.
The firm offers more than 160 funds to U.S. investors and more than 80
additional funds in non-U.S. markets. For more information, visit
vanguard.com.
All asset figures are as of August 31, 2013, unless otherwise noted. All
expense ratio figures are as of December 31, 2012, unless otherwise
noted.
For more information on Vanguard funds, visit vanguard.com or call
800-662-7447 to obtain a prospectus. Visit our website, call
800-662-7447, or contact your broker to obtain a prospectus for Vanguard
ETF Shares. Investment objectives, risks, charges, expenses, and other
important information are contained in the prospectus; read and consider
it carefully before investing.
Vanguard ETF Shares are not redeemable with the issuing fund other
than in Creation Unit aggregations. Instead, investors must buy or sell
Vanguard ETF Shares in the secondary market with the assistance of a
stockbroker. In doing so, the investor may incur brokerage commissions
and may pay more than net asset value when buying and receive less than
net asset value when selling.
Mutual funds and ETFs are subject to risks, including possible loss of
principal.
We recommend that you consult a tax or financial advisor about your
individual situation.
U.S. Pat. No. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646
Vanguard Marketing Corporation, Distributor.
© 2013 The Vanguard Group, Inc. All rights reserved.
Copyright Business Wire 2013