Emerging markets index fund completes benchmark transitions
June 27, 2013
Vanguard Emerging Markets Stock Index Fund and its exchange-traded fund (ETF) shares (ticker: VWO), the world's largest emerging markets ETF, will begin seeking to track the FTSE Emerging Index on June 28, 2013.
Prior to January 2013, the Emerging Markets Stock Index Fund sought to track the MSCI Emerging Markets Index. During its six-month transition, the fund sought to track a custom benchmark, the FTSE Emerging Transition Index, so that Vanguard's portfolio management team could implement the transition cost-effectively with minimal market impact and negligible tracking error, and so that shareholders could see the fund's position. As of June 28, the fund will have fully moved from the transition index to the FTSE Emerging Index.
You can learn more about the benchmark transitions in an interview with Vanguard Chief Investment Officer Tim Buckley.
The fund's move 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 by the University of Chicago's Center for Research in Security Prices (CRSP).
- 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.
- All investing is subject to risk, including possible loss of the money you invest.
- Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.