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Fund Times

Fund Times: Openings, Closings, & Manager Changes

Vanguard, fund flows, Putnam, Montgomery, Waddell & Reed, Ivy, and others.

New Bogies May Help Vipers Multiply
Vanguard says new indexes created by Morgan Stanley Capital International may serve as better benchmarks for some of its index funds. If the funds' boards of trustees adopt the new bogies, though, they also may assist Vanguard's plans to extend its Viper exchange-traded share class to some of its portfolios that track Standard & Poor's style- and market-cap-specific indexes.

Vanguard currently offers Viper shares, which can be bought and sold on an exchange like a stock, for its Vanguard Total Stock Market (VTSMX), Extended Market (VEXMX), European Stock (VEURX), Pacific Stock (VPACX), and Emerging Markets Stock (VEIEX) index funds. A legal fracas, however, has hampered the family's ambitions to offer a wider Viper lineup. Last year the U.S. Court of Appeals for the Second Circuit agreed with Standard & Poor's that Vanguard's licensing agreement doesn't allow exchange-traded funds or share classes tied to the S&P 500 index. The decision stymied not only Vanguard's plans for Vanguard 500 Index (VFINX) Vipers, but also its designs for exchange-traded shares for its funds tracking S&P's other mid- and small-cap benchmarks.