Vanguard Emerging Markets Stock Index Fund and ETF Transition to FTSE Index
VALLEY FORGE, Pa. -- June 27, 2013
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.
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
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.
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