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.
For more information on Vanguard funds, visit vanguard.com, or call
800-662-7447 to obtain a prospectus. Visit our website, call
800-662-7447, or contact your broker to obtain a prospectus for Vanguard
ETF Shares. Investment objectives, risks, charges, expenses, and other
important information are contained in the prospectus; read and consider
it carefully before investing.
Vanguard ETF Shares are not redeemable with the issuing fund other
than in Creation Unit aggregations. Instead, investors must buy or sell
Vanguard ETF Shares in the secondary market with the assistance of a
stockbroker. In doing so, the investor may incur brokerage commissions
and may pay more than net asset value when buying and receive less than
net asset value when selling.
Mutual funds and ETFs are subject to risks, including possible loss of
principal. Foreign investing involves additional risks including
currency fluctuations and the potential for adverse developments in
specific countries or regions. These risks are especially high in
emerging markets.
All rights in the FTSE Emerging Index (the “Index”) vest in FTSE
International Limited (“FTSE”). “FTSE®” is a trademark of London Stock
Exchange Group companies and is used by FTSE under license. The Vanguard
Emerging Markets Stock Index Fund (the “Product”) has been developed
solely by Vanguard. The Index is calculated by FTSE or its agent. FTSE
and its licensors are not connected to and do not sponsor, advise,
recommend, endorse or promote the Product and do not accept any
liability whatsoever to any person arising out of (a) the use of,
reliance on or any error in the index or (b) investment in or operation
of the Product. FTSE makes no claim, prediction, warranty or
representation either as to the results to be obtained from the Product
or the suitability of the Index for the purpose to which it is being put
by Vanguard.
U.S. Pat. No. 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646
Vanguard Marketing Corporation, Distributor.
© 2013 The Vanguard Group, Inc. All rights reserved.
Copyright Business Wire 2013