VALLEY FORGE, Pa.--(BUSINESS WIRE)--Vanguard announced that Vanguard Tax-Managed International Fund will seek to track the FTSE Developed ex North America Index, effective at the opening of trading at 9:30 a.m. Eastern time on May 29, 2013.
The target benchmark of the $15.7 billion Tax-Managed International Fund was previously the MSCI EAFE Index. The FTSE benchmark provides similar exposure to large-capitalization companies in developed markets outside of the United States and the transition will not impact the fund’s investment objective or policies.
With the transition, the name of the fund’s ETF Shares will change from Vanguard MSCI EAFE ETF to Vanguard FTSE Developed Markets ETF. The ETF’s ticker symbol (VEA) will remain the same.
In April, Vanguard announced expense ratio changes for 41 funds, including the Tax-Managed International Fund. The fund’s Admiral and ETF Shares reported 2012 expense ratios of 0.10%, a decline of 2 basis points from 2011. While the current expense ratios of the fund will not be immediately impacted by the transition to the new benchmark, Vanguard expects the move will help enable the company to deliver lower expense ratios over time.
Through April, Vanguard led the ETF industry in net cash flow, attracting $23 billion. With $1.7 billion in net cash inflow, VEA was the top-selling developed international market “core” product (source: Bloomberg, Vanguard analysis).
For more information on Vanguard’s benchmark changes, go to Index Innovation at Vanguard.
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 $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 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 www.ftse.com.
All asset figures are as of April 30, 2013.
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