Vanguard Beefs Up Its ETF Lineup

New S&P 500 ETF will have an expense ratio of 0.06 percent.

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Vanguard has announced that it will create 19 new products, all of which will have exchange-traded fund and mutual fund share classes. The firm has also said that it will add an ETF share class to its existing S&P 500 index fund. The S&P 500 ETF will charge an expense ratio of 0.06 percent, a third of what retail investors pay for the mutual fund share class. Like Vanguard's existing ETFs, the new ones will offer commission-free trades for  the firm's brokerage clients.

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"Vanguard's focus has been on developing a full array of stock and bond funds and ETFs to cover domestic and international markets and market segments. We are taking this next logical step to provide multiple options within the domestic stock markets and more choice for bond investors," Vanguard CEO Bill McNabb said in a statement.

Seven of the new offerings will use indexes developed by Russell Investments, which for several years has been increasing its presence in the ETF world. "It's definitely an increasingly popular tool that investors can use to help manage their portfolios," Rolf Agather, the director of research and innovation for Russell's index group, says of ETFs. "We think ETFs offer a lot of advantages over traditional mutual funds."

Year to date through May, Vanguard's ETFs have attracted $14 billion in investments, up 81 percent from the same time period last year.