Vanguard's [see profile] new S&P-index-powered mutual funds and ETFs just hit the market today. The Valley Forge, Pennsylvania-based mutual fund firm officially launched an ETF version of its flagship S&P 500 index fund, along with eight new funds (and ETF versions of those funds) tracking different pieces of the S&P 500, S&P MidCap 400 and the S&P SmallCap 600 indexes.

The planned move first came to light at the beginning of the summer (see The MFWire, 6/25/2010), and it marks the end of a long-standing dispute between Vanguard and S&P.

The new Vanguard S&P 500 ETF, which costs six basis points, will compete with two giant S&P 500-tracking ETFs, SSgA's SPDR S&P 500 ETF (9.45 bps) and BlackRock's iShares S&P 500 Index Fund (9 bps).

Vanguard now boasts 55 ETFs, and the firm has 11 more planned ones in its pipeline. 

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