Vanguard to Allow Cost-Free Switch to New Exchange-Traded Index Shares

If you're a current shareholder in one of five Vanguard index funds that plans to offer new exchange-traded share classes, you will soon face a mild dilemma: Stick with what you have or switch to the new shares?

The primary difference between the two share classes is cost, and any possible savings probably aren't significant for most investors. But they're worth examining.

First, let's recap the details of Friday's announcement: The indexing mutual fund giant -- with $240 billion in index assets under management -- announced it will introduce a new share class on five of its existing index funds, which will allow active investors to trade these shares like stocks. ...