Vanguard to Split Shares for Three Exchange-Traded Funds

Vanguard® Total Stock Market Index Fund, Vanguard Emerging Markets Stock Index Fund, and VanguardExtended Market Index Fund today declared a 2-for-1 split of their ETF shares.

See the Vanguard ETF directory for a complete list of funds.

The share split for Vanguard Total Stock Market ETF (VTI), Vanguard Emerging Markets ETF (VWO), and Vanguard Extended Market ETF (VXF) entitles each shareholder of record at the close of business on June 13, 2008, to receive one additional share for every share of the ETF held on that date. The additional shares are expected to be distributed to shareholders on June 17. The shares will trade at the new split-adjusted price beginning June 18.

The 2-for-1 split will lower the share price of the three ETFs by half of their pre-split level and double the number of outstanding shares. Each of the ETFs currently trades above $100 a share. The split is also expected to at least double the average daily trading volume.

Vanguard Total Stock Market ETF (VTI) and Vanguard Emerging Markets ETF (VWO) are two of Vanguard’s largest and most actively traded ETFs. VTI has net assets of $10.8 billion and features an industry-leading expense ratio of 0.07%. VWO, which has grown to $7.6 billion since its inception in May 2004, has an expense ratio of 0.25%. The average expense ratio of Vanguard ETFs is 0.16%, which is less than half the industry average expense ratio of 0.48% (Source: Lipper Inc.).

Vanguard is a leader in the ETF marketplace, offering 37 stock and bond ETFs. Vanguard’s ETF assets have grown 78% over the past year ended April 2008, to more than $50 billion in total assets. Vanguard ranks among the top ETF providers in cash flow, with year-to-date cash flow through May of $8.7 billion.