Vanguard to Open 2 More Funds That Track International Indexes

Vanguard Group of Valley Forge, Pa., said Tuesday that it plans to add two international index funds.The new funds are to offer exposure to 20 developed European and Pacific equity markets and will track the Morgan Stanley Capital International-Europe, Australasia, Far East Index.

The company also said it plans to add institutional share classes to three existing international index offerings: the Vanguard European Stock Index Fund, Vanguard Pacific Stock Index Fund, and Vanguard Emerging Markets Stock Index Fund.

With $553.19 billion of mutual fund assets on Dec. 31, according to Financial Research Corp. of Boston, Vanguard is the second-largest fund company in the United States.

Federated of Pa. to Drop Sales Fees On 4 Growth Funds During March

Federated Investors of Pittsburgh plans to let investors buy four of its equity-oriented growth funds without an up-front sales charge during March, a company executive said.The offer is part of a continued effort by Federated to promote itself as more than a money market shop. Money market funds accounted for 66.74% of Federated's assets under management on Dec. 31; equity funds represented 16.78%, bond funds 12.7%, and separate accounts 3.78%.

The pricing break is to apply to the fund company's aggressive growth fund, communications technology portfolio, international small company fund, and large-capitalization growth fund. Federated will pay brokers an up-front charge of 2% to sell the four funds, and investors will pay a sales charge only if they redeem shares within 30 months, Mr. Fadool said.

- Cheryl Winokur

E-Trade Offering Delta Air Miles To Investors Who Open Accounts

E-Trade Group Inc. of Menlo Park, Calif., announced an agreement with Delta Air Lines Inc. that would give investors free miles on Delta flights.Delta frequent fliers will get bonus miles for opening a new E-Trade account - 5,000 miles for a $1,000 deposit, 10,000 miles for a $10,000 deposit, and 25,000 miles for a $50,000 deposit - the Internet company said Monday. Additional programs to be announced will let investors earn up to 50,000 bonus miles.

E-Trade announced a similar program in cooperation with United Airlines in March.

- Amy L. Anderson

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