Vanguard revealed yesterday that it had filed registration with the SEC for seven new targeted bond index funds. Each fund will also offer a corresponding ETF class of shares. The new funds will track Barclays' U.S 1-3, 3-10 and 10+ Government Bond, 5-10 and 10+ Corporate Bond and Mortgage-Backed Securities indexes. The ETF and Signal Share classes will sport an expense ratio of 15 bps, while the institutional shares will have an expense ratio of 9 bps.

Bill McNabb, Vanguard president and CEO, noted that the new funds can serve as a complement to Vanguard's existing lineup of five broad-based indexed bond funds.

"Financial advisors and institutions want to construct broadly diversified fixed income portfolios, while retaining the ability to emphasize particular sectors or durations,"McNabb said. "Working in concert, our broad-based bond index funds and these new, more targeted funds can help achieve this goal." 

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