Vanguard Launches Small-Cap Developed, Emerging Market ETF

Vanguard FTSE All-World ex-US Small-Cap ETF (ticker: VSS), which seeks to track the performance of the FTSE Global Small Cap ex US Index, began trading on the NYSE Arca.

The launch brings the number of Vanguard’s ETFs to 39, with aggregate assets topping $44 billion, according to a news release from Vanguard.

VSS holds approximately 2,100 securities and has an expense ratio of 0.38. Vanguard said it is the only international small-cap ETF to cover both developed and emerging international markets.

“Many advisers are committed to providing international exposure within their clients’ portfolios, but until now a low-cost index option with developed and emerging market small-cap exposure was not available,” said Martha Papariello, principal, Vanguard Financial Advisor Services, in the release.

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Pomeroy Proposes Updates to Saver’s Credit

U.S. Congressman Earl Pomeroy (D-North Dakota) has introduced legislation that would make changes to the Saver’s Credit.

According to a Pomeroy press release, The Savings for American Families’ Future Act would change the current Saver’s Credit, created by Congress in 2002, to make it refundable and require that the credit be paid only into the taxpayer’s retirement accounts. The bill would also expand the number of families and individuals that would be able to use the full Saver’s Credit by more than doubling the existing income limits for the full credit.

The new limits would be set at adjusted gross incomes (AGI) of $32,500 for individuals and $65,000 for couples. A phase-out range gradually lowers the credit until AGI reaches $42,500 for individuals and $85,000 for couples, at which time taxpayers are no longer eligible, the announcement said. The bill would establish the maximum amount of an employee’s contribution that is eligible for the Saver’s Credit at $500 for an individual and $1,000 for a couple, with the limits to increase by $100 and $200, respectively, each year until 2020, and after that time, to increase with inflation.

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“In the current economic climate, many employers are no longer able to match their employees’ retirement savings contributions, leaving already stretched employees to make up the difference. The Savings for American Families’ Future Act will update the Saver’s Credit to help workers continue to put aside money for their retirement years,” Pomeroy said in the announcement.

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