Vanguard Group is upping the ante by lowering fees and putting pressure on rival exchange traded fund (ETF) providers. Last week Vanguard, filed a registration for an ETF tracking MSCI-EAFE. John Spence for reports this move caused quite a stir among the industry because the second largest U.S.-listed ETF by assets tracks the same index-iShares MSCI EAFE Index Fund (EFA), sponsored by Barclays Global Investors. This $45.5 billion ETF is popular among investors for the international exposure. Vanguard’s fund in registration, the Vanguard Europe Pacific ETF boasts an expense ratio of 0.15%, half of the 0.35% required by Barclays. The fee war has already had an impact on conventional mutual funds. In the end, the individual investor is the winner.

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