So, Vanguard [profile] is making headaches for everyone in the mutual fund industry who likes their fee revenue, according to Barron's.

The firm plans to launch its Total International Bond Index Fund and its ETF shares by the end of the second quarter.

Barron's Brendan Conway writes that the funds will track the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index, a U.S. dollar-hedged index of about 7,000 corporate and government bonds from 52 countries. The ETF and Admiral-class shares are now expected to run for 20-basis points, with the institutional class going for 12-basis points.

What's the big deal?

The two previously popular funds that covered this sector, the iShares iBoxx Investment Corporate Bond ETF and the SPDR Barclays International Treasury Bond ETF cost 15-basis points and 50-basis points respectively. 

Edited by: Tommy Fernandez


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