The Wall Street Journal reported over the weekend that Vanguard will soon offer an ETF tracking the MSCI EAFE index, to trade on the AMEX, with an expense ratio of only 0.15% — less than half the cost of Barclays Global Capital’s iShares offering.

The WSJ also notes the explosive growth at BGI, where its iShares ETFs have helped management fees grow nearly 80% y/y in ‘06 to $84 million. BGI has 60% of the U.S. ETF market based on the number of products vs. only 7% for Vanguard. [But,] BGI has 10% of the market based on assets under management, second largest.