TORONTO--()--Effective today, Vanguard MSCI Emerging Markets Index ETF will seek to track a new index, the FTSE Emerging Index. As a result, the name of this exchange-traded fund (ETF) will change to Vanguard FTSE Emerging Markets Index ETF from Vanguard MSCI Emerging Markets Index ETF. The ticker will stay the same.
|Vanguard ETF||Ticker||Previous Index||New Index||New Name|
|Vanguard MSCI Emerging Markets Index ETF||VEE||MSCI Emerging Markets Index||FTSE Emerging Index||Vanguard FTSE Emerging Markets Index ETF|
The FTSE Emerging Index is a market capitalization-weighted index that provides comprehensive coverage of emerging markets. The index was developed by FTSE, a leading provider of index data for investors worldwide. The Vanguard Group, Inc. has entered into long-term agreements with FTSE that are expected to provide cost certainty and savings over time for this and other Vanguard ETFs™.
The index offers comprehensive and diversified exposure to 22 emerging market countries, including Brazil, Russia, India, and China. The index is generally comparable to the fund's prior benchmark. The most notable difference between FTSE’s international indexes and MSCI’s international indexes is that FTSE classifies South Korea as a developed market, making it necessary for the ETF to gradually sell down South Korean exposure and invest the proceeds in the other markets in the index.
In order to provide transparency to unitholders during the transition, the Emerging Markets Index ETF will follow a transition index, the FTSE Emerging Transition Index, for approximately six months. This extended transition period will reduce the costs associated with trading large amounts of securities in a short period. During the transition period, FTSE will provide a range of freely available index data with respect to the transition index on ftse.com/vanguard, including indicative constituents and weights.
FTSE: A global index leader
Vanguard has used FTSE indexes since 2003 and now employs the firm’s benchmarks for more than 20 index portfolios around the world, representing $26 billion in aggregate assets. With Vanguard’s move to the new benchmarks, FTSE will become the third-largest equity exchange-traded index benchmark provider globally.
Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. Vanguard 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 trillion in global assets. Vanguard offers more than 170 funds to U.S. investors and more than 70 additional funds in non-U.S. markets. For more information, please visit vanguardcanada.ca.
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.
All asset figures are as of 30 November 2012, unless otherwise noted.
Units of the Vanguard ETFs are offered only by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be downloaded from www.sedar.com. Investors should read the prospectus before making an investment decision.
Commissions, management fees, and expenses all may be associated with the Vanguard ETFs. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
The Vanguard ETF referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such ETF. The prospectus contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds.
All rights in the FTSE Emerging Index and the FTSE Emerging Transition Index (the “Indices”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under licence. The Vanguard FTSE Emerging Markets Index ETF (the “Product”) has been developed solely by Vanguard. The Indices are 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 Indices 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 Indices for the purpose to which it is being put by Vanguard.