Two Vanguard International Funds and ETFs To Transition To FTSE Indexes
Vanguard announced that Vanguard European Stock Index Fund and Vanguard Pacific Stock Index Fund will begin tracking FTSE indexes at the opening of trading at 9:30 a.m. Eastern time on March 27, 2013.
The two funds (see chart below) previously tracked MSCI indexes.
|Fund||New FTSE Index||Former MSCI Index|
|Vanguard European Stock Index Fund||FTSE Developed Europe Index||MSCI Europe Index|
|Vanguard Pacific Stock Index Fund||FTSE Developed Asia Pacific Index||MSCI Pacific Index|
In connection with the index change, the names of the funds’ ETF share classes will change. Vanguard MSCI Europe ETF will become Vanguard FTSE Europe ETF. Vanguard MSCI Pacific ETF will become Vanguard FTSE Pacific ETF. The ETFs’ ticker symbols (VGK and VPL, respectively) will remain the same.
Vanguard recently disclosed expense ratio reductions for various share classes of the two funds, including the ETF share classes. In particular, VGK and VPL reported 2012 expense ratios of 0.12%, a decline of 2 basis points from 2011. The current expense ratios of the funds will not be immediately affected by the transition, although Vanguard expects that the licensing agreements with FTSE will enable the firm to deliver lower costs over time.
Vanguard announced in October 2012 that 22 funds would be adopting new indexes. For more information about Vanguard’s benchmark changes, go to Index Innovation at Vanguard.
Vanguard reports continued strong investor interest in the 22 funds adopting new indexes. Vanguard funds have attracted $39 billion in cash flows year-to-date as of February 28, 2013, including $20 billion in the funds that have transitioned or will transition to new indexes.
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 nearly $2.1 trillion in U.S. mutual fund assets, including $270 billion in ETF assets. The firm offers more than 170 funds to U.S. investors and more than 70 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 www.ftse.com.
Asset figures are as of February 28, 2013.
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