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June 10, 2005, 12:42 p.m. EDT

Vanguard launches fund of active funds

Eight active portfolios in one fund; new Admiral shares

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    Vanguard Diversified Equity Fund;Investor (VDEQX)
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    Vanguard Growth & Income Fund;Investor (VQNPX)
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By John Spence, MarketWatch

BOSTON (MarketWatch) -- Highlighting the growth of funds that roll several investments into one package, Vanguard Group said Friday that shares of the new Diversified Equity fund are available for purchase.

The fund will invest in eight actively managed U.S. stock portfolios at the Valley Forge, Pa.-based fund shop.

The Diversified Equity fund /zigman2/quotes/204447133/realtime VDEQX -1.93% , which has an expense ratio of 0.44%, invests in U.S. small-, mid- and large-cap Vanguard funds that pursue active strategies.

According to the fund's prospectus, it will invest about 20% in Vanguard Growth and Income /zigman2/quotes/206768773/realtime VQNPX -1.82% ; 15% each in Vanguard Windsor /zigman2/quotes/210492600/realtime VWNDX -2.28% , Vanguard Windsor II /zigman2/quotes/204011996/realtime VWNFX -1.94% , Vanguard Morgan Growth and Vanguard U.S. Growth /zigman2/quotes/210088532/realtime VWUSX -1.80% ; 10% in Vanguard Explorer /zigman2/quotes/205808530/realtime VEXPX -2.03% ; and 5% each in Vanguard Mid-Cap Growth /zigman2/quotes/202402456/realtime VMGRX -1.57% and Vanguard Capital Value .

The move by the fund giant is part of a growing push in the industry for more product simplicity as retirement-plan providers and investors increasingly turn to diversified investments that provide exposure to several funds in one wrapping.

Vanguard manages 15 other funds of funds, but the Diversified Equity portfolio would be its first to invest exclusively in stocks.

"Vanguard Diversified Equity fund is being offered to serve as a starter fund for investors seeking a broadly diversified, low-cost equity portfolio," Chairman Jack Brennan said in a previous written statement.

Separately, Vanguard said lower-fee Admiral shares are available for the $9 billion Vanguard Inflation Protected Securities fund /zigman2/quotes/207983017/realtime VIPSX -0.40% .

Admiral shares are designed for wealthier investors and have lower expense ratios to reflect the economies of scale of big, long-standing accounts.

Admiral shares for the Inflation-Protected Securities fund /zigman2/quotes/204162186/realtime VAIPX -0.37% have fees of 0.11%, while Investor shares levy 0.18%.

/zigman2/quotes/204447133/realtime
US : U.S.: Nasdaq
$ 39.13
-0.77 -1.93%
Volume: 0.00
Sept. 23, 2022
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/zigman2/quotes/206768773/realtime
US : U.S.: Nasdaq
$ 50.27
-0.93 -1.82%
Volume: 0.00
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/zigman2/quotes/210492600/realtime
US : U.S.: Nasdaq
$ 20.96
-0.49 -2.28%
Volume: 0.00
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/zigman2/quotes/204011996/realtime
US : U.S.: Nasdaq
$ 36.82
-0.73 -1.94%
Volume: 0.00
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/zigman2/quotes/210088532/realtime
US : U.S.: Nasdaq
$ 40.35
-0.74 -1.80%
Volume: 0.00
Sept. 23, 2022
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/zigman2/quotes/205808530/realtime
US : U.S.: Nasdaq
$ 92.56
-1.92 -2.03%
Volume: 0.00
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/zigman2/quotes/202402456/realtime
US : U.S.: Nasdaq
$ 18.17
-0.29 -1.57%
Volume: 0.00
Sept. 23, 2022
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/zigman2/quotes/207983017/realtime
US : U.S.: Nasdaq
$ 12.39
-0.05 -0.40%
Volume: 0.00
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/zigman2/quotes/204162186/realtime
US : U.S.: Nasdaq
$ 24.34
-0.09 -0.37%
Volume: 0.00
Sept. 23, 2022
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John Spence is a reporter for MarketWatch in Boston.

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