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May 08, 2000
Vanguard Introduces Social Index Fund
In a giant stride into the mainstream, a socially screened mutual fund is offered by one of the
largest fund families in the U.S.
SocialFunds.com --
Vanguard Group, the nation's second largest mutual fund firm headquartered in Valley Forge,
Pennsylvania, announced the launch of the Vanguard Calvert Social Index Fund today. This represents
the second social fund offered by a mainstream mutual fund family this year, following an offering
by TIAA-CREF last month.
 Vanguard's new no-load fund is designed to track the
performance of the Calvert Social Index, a new benchmark for socially responsible investors
launched last week by Calvert Group, one of the leading providers of social investment products.
While Calvert's index was momentous news in itself, its impact will be greatly magnified by the new
offering from Vanguard.
"Many clients have asked us to offer a fund with a social
orientation for more than a decade," said Vanguard Chairman and CEO John Brennan. "With this index,
we will be able to accommodate both our clients and other investors who consider social criteria in
their investment selection."
The Calvert Social Index, the benchmark for Vanguard's new
fund, is comprised of large- and mid-cap stocks selected from 1,000 of the largest companies in the
U.S. Calvert analyzes each company's record and policies with respect to the environment, workplace
issues, product safety and impact, weapons contracting, international operations, human rights, and
indigenous people's rights.
Vanguard Group, bringing a new high profile to social
investment, serves 14 million shareholder accounts and manages more than $550 billion, including
more than $170 billion in retirement plans. The Vanguard family of funds includes 106 funds for
U.S. investors and 33 additional funds in foreign markets.
Vanguard announced the
launching of the Vanguard Calvert Social Index Fund at the same time as two international no-load
index funds, Vanguard Developed Markets Index Fund, and Vanguard Institutional Developed Markets
Index Fund. Vanguard is considered a leading provider of index funds for individual investors,
having pioneered the concept with the introduction of Vanguard 500 Index Fund in 1976, and with
today's additions the company broadens its index fund roster to 32 offerings.
"The
introduction of three new funds and institutional share classes of three existing funds not only
underscores our commitment to indexing, but also our desire to broaden the array of low-cost index
alternatives available to both our individual and institutional clients," said Brennan.
The expense ratio for the Vanguard Calvert Social Index Fund is a rock-bottom 0.25 percent,
reflecting the monumental economy of scale afforded by one of the larges fund companies in the
world.
The Vanguard Calvert Social Index Fund is a significant indication of the rising
popularity of socially responsible investments. The new fund raises a compelling challenge for
other large mutual fund families to offer products for investors that consider social, as well as
financial, criteria. Other fund companies will surely be watching the investor response to
Vanguard's foray into social investments.
©
SRI World Group, Inc. All Rights Reserved.
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