Bringing you live news and features since 2006 

Vanguard Emerging Markets Fund and ETF begin transition to new FTSE Index


The Vanguard Emerging Markets Stock Index Fund, including Vanguard MSCI Emerging Markets ETF, have begun tracking the FTSE Emerging Transition Index as an interim step toward ultimately tracking the FTSE Emerging Index.

In connection with the index change, the name of the fund’s ETF share class will change from Vanguard MSCI Emerging Markets ETF to Vanguard FTSE Emerging Markets ETF. The ETF’s ticker symbol (VWO) will not change.

The Emerging Markets Stock Index Fund has USD76bn in assets, making it the largest fund in its category. VWO, a share class of the fund, has USD60bn in assets and was the top-selling emerging markets ETF in the US in 2012.

The FTSE Emerging Index is a market capitalisation-weighted index that provides comprehensive coverage of emerging markets. Vanguard has entered into long-term agreements with FTSE that are expected to provide cost certainty and savings over time for investors.

The index offers comprehensive and diversified exposure to 22 emerging market countries, including Brazil, Russia, India, and China. It is generally comparable to the fund’s prior benchmark. The most notable difference between FTSE and MSCI’s international indexes is that FTSE classifies South Korea as a developed market, making it necessary for the Emerging Markets Stock Index Fund to gradually sell down its South Korean exposure and invest the proceeds in the other markets in the index.

To minimise market impact during the transition, the Emerging Markets Stock Index Fund will follow the FTSE Emerging Transition Index for approximately six months. This extended transition will reduce the costs associated with trading large amounts of securities in a short period. To provide transparency to shareholders during the transition, FTSE will supply weekly updates of the transition index’s composition.

The etfexpress Awards 2013 for the top ETF product and service providers will be held in London towards the end of Q1 2013. Please click here to nominate your product/firm.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by