Oct. 2, 2012
/PRNewswire/ -- FTSE Group ("FTSE") has been selected by Vanguard, one of the top three US asset management firms, as the index benchmark provider for six international equity index funds with aggregate assets of
. These funds will transition to benchmarks in the FTSE Global Equity Index Series, replacing MSCI.
This transaction represents the largest international index provider benchmark switch ever and includes the world's largest emerging markets fund, the
Vanguard Emerging Markets Stock Index Fund and its exchange-traded fund (Ticker: VWO). These funds will move to the FTSE Emerging Index.
"Today's agreement with Vanguard underlines FTSE's continuing growth as a global brand," says
, Chief Executive of the FTSE Group. "With the switch, FTSE will become the third-largest equity exchange traded product index benchmark provider globally, with more than
in ETF assets benchmarked to FTSE indices."
"This agreement represents another significant step forward in making the FTSE name as prominent in
the United States
as it is elsewhere in the world," adds
, President, FTSE North America. "FTSE is committed to building long-term, sustainable relationships with clients in the US and around the world to bring real value to investors."
Vanguard conducted a rigorous selection process, which evaluated the quality and suitability of the respective indices. "The FTSE indexes are well constructed, offer comprehensive coverage of their respective markets, and meet Vanguard's 'best practice' standards for market benchmarks," said Vanguard Chief Investment Officer
. "The benchmarks offer comprehensive and diversified coverage of the international developed and emerging markets."
The long-term licensing agreement expands an already deep relationship between FTSE and Vanguard. Vanguard already employs FTSE benchmarks for more than 20 index portfolios around the world, representing
in aggregate assets, including nine ETFs benchmarked with a total AUM of
listed in the US, UK and
. FTSE will be a partner in Vanguard's international growth strategy going forward, with products already announced in the UK and
Notes to the Editor
Background Information on the FTSE Global Equity Index Series
The FTSE Global Equity Index Series is a leading global benchmark, incorporating the well known FTSE All-World Index.