Vanguard files for new REIT II Index Fund

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In a separate filing, Vanguard submitted a registration statement to the SEC today to launch a new fund—Vanguard REIT II Index Fund. The new fund's investment objective, strategies, and index will be identical to the existing Vanguard REIT Index Fund, which was launched in 1996 and has grown to be the largest REIT fund in the industry.* The REIT II Index Fund will also invest in the same portfolio of securities as the REIT Index Fund. 

The REIT Index Fund will be the principal investor in the REIT II Index Fund. This structure will provide increased investment capacity for the REIT Index Fund, which has attracted considerable shareholder investment in recent years. Shareholders of the REIT Index Fund will be able to continue to interact with that fund as they do today.

The new REIT II Index Fund will be offered to select institutional clients, separately managed accounts, and other Vanguard funds through Institutional Plus Shares with a minimum initial investment of $100 million. More details about the new fund will be available when it begins operations, which is expected to happen late in the third quarter of this year.

*Source: Morningstar, Inc.