Vanguard Index Swap All About Cost

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October 4, 2012 1:50pm ETF BASIC NEWS

Morningstar sat down with a representative of Vanguard to discuss their decision to switch from MSCI to FTSE and CRSP indexes for 22. According to Joel Dickson, senior ETF strategist and principal at Vanguard, There were three main reasons for this change and its cost,


cost, and cost. So, at this point what we’ve seen over the course of the last decade or so is a real convergence in terms of index methodology to a set of best practices that we first were talking about 10 years ago, and really the major index providers have all converged upon that set of best practices. So, it’s not about a better index or better index construction; it is about having cost certainty, long-term cost savings for our shareholders.

You can see the full “Morningstar” interview below:


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