Vanguard Emerging Markets Stock Index Fund And ETF Transition To FTSE Index
Vanguard announced that the $70 billion Vanguard Emerging Markets Stock Index Fund and its ETF Shares (ticker: VWO), the world’s largest emerging markets ETF, will begin seeking to track the FTSE Emerging Index on June 28, 2013.
The Emerging Markets Stock Index Fund tracked the MSCI Emerging Markets Index prior to January. During its six-month transition, the fund tracked a custom benchmark, the FTSE Emerging Transition Index, so that the portfolio management team could implement the transition cost-effectively with minimal market impact and negligible tracking error, as well as to enable shareholders to see the fund’s position. As of June 28, the fund will have fully moved from the transition index to the FTSE Emerging Index.
The transition of the fund to the FTSE Emerging Index concludes the benchmark changes announced by Vanguard in October 2012 for 22 of its stock and balanced index funds. In January 2013, these funds began moving from MSCI indexes to indexes provided by FTSE and University of Chicago's Center for Research in Security Prices (CRSP).
For more information on the conclusion of Vanguard’s benchmark transitions, please see this Q&A with Vanguard Chief Investment Officer Tim Buckley.About Vanguard Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $2.2 trillion in U.S. mutual fund assets, including more than $285 billion in ETF assets. The firm offers more than 160 funds to U.S. investors and more than 80 additional funds in non-U.S. markets. For more information, visit vanguard.com. About FTSE Group FTSE Group (FTSE) is a world leader in the provision of global index and analytical solutions. FTSE calculates indexes across a wide range of asset classes, on both a standard and custom basis. FTSE indexes are used extensively by investors worldwide for investment analysis, performance measurement, asset allocation, portfolio hedging and the creation of a wide range of index derivatives, funds, ETFs, and other structured products. For more information, visit ftse.com. About The Center for Research in Security Prices (CRSP) CRSP (Center for Research in Security Prices) is one of 11 research centers at the University of Chicago Booth School of Business. The research organization pioneered the development of U.S. stock market data in 1960 that are widely used in academic and investment research. The CRSP Indexes capture broad U.S. equity market coverage and include securities traded on the NYSE, AMEX, NASDAQ and ARCA markets. Nearly 4,000 constituents across mega, large, mid, small and micro capitalizations, representing 100% of the U.S. investable equity market (or 99.5% of cumulative full market capitalization of U.S. equity), comprise the market-cap indexes. CRSP’s portfolio of historical databases for common stocks, mutual funds, Treasuries, REITs, and research indexes is relied on by more than 435 leading academic institutions in 31 countries. It is also widely used for research in the commercial and governmental sectors. For more information, visit crsp.com. Asset figures are as of May 31, 2013.
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