VALLEY FORGE, Pa.--(BUSINESS WIRE)--Vanguard announced today that nine funds will transition to new target benchmarks, with eight domestic index funds moving to University of Chicago’s Center for Research in Security Prices (CRSP) indexes and one international index fund adopting a FTSE index, on April 17, 2013. The transitions are related to Vanguard’s October 2012 announcement that 22 funds would be adopting new indexes over several months.
The nine funds scheduled to transition from MSCI benchmarks are listed below.
| Fund | New Index | Former Index | ||||
| Mega Cap Growth Index Fund | CRSP US Mega Cap Growth Index | MSCI US Large Cap Growth Index | ||||
| Mega Cap Value Index Fund | CRSP US Mega Cap Value Index | MSCI US Large Cap Value Index | ||||
| Growth Index Fund | CRSP US Large Cap Growth Index | MSCI US Prime Market Growth Index | ||||
| Value Index Fund | CRSP US Large Cap Value Index | MSCI US Prime Market Value Index | ||||
| Mid-Cap Growth Index Fund | CRSP US Mid Cap Growth Index | MSCI US Mid Cap Growth Index | ||||
| Mid-Cap Value Index Fund | CRSP US Mid Cap Value Index | MSCI US Mid Cap Value Index | ||||
| Small-Cap Growth Index Fund | CRSP US Small Cap Growth Index | MSCI US Small Cap Growth Index | ||||
| Small-Cap Value Index Fund | CRSP US Small Cap Value Index | MSCI US Small Cap Value Index | ||||
| Developed Markets Index Fund | FTSE Developed ex North America Index | MSCI EAFE Index | ||||
With the change in benchmarks, the Vanguard Mega Cap 300 Growth Index Fund is renamed Vanguard Mega Cap Growth Index Fund and its two share classes are renamed Mega Cap Growth Index Fund Institutional Shares and Mega Cap Growth ETF. In addition, the Vanguard Mega Cap 300 Value Index Fund is renamed Vanguard Mega Cap Value Index Fund and its two share classes are renamed Mega Cap Value Index Institutional Shares and Mega Cap Value ETF.
Vanguard has now successfully transitioned 18 of the 22 funds to new benchmarks. The CRSP and FTSE indexes are well constructed, offer comprehensive market coverage, and meet Vanguard’s "best practice" standards for market benchmarks. Vanguard also expects that the benchmark transitions will result in considerable cost savings for the funds’ shareholders over time in the form of lower expense ratios. In addition, the agreements with FTSE and CRSP are long term in nature and provide cost certainty going forward with respect to licensing costs, which have been escalating and represent a growing portion of the expenses that investors pay to own index products.
About Vanguard
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 $2.15 trillion in U.S. mutual fund assets, including $277 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 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 March 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 political uncertainty.
Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.
All rights in the FTSE Developed ex North America 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. Vanguard Developed Markets Index (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.
© 2013 The Vanguard Group, Inc. All rights reserved.
