The Vanguard European Stock Index Fund and Vanguard Pacific Stock Index Fund have begun tracking FTSE indexes.
The two funds previously tracked MSCI indexes.
In connection with the index change, the names of the funds’ ETF share classes will change. Vanguard MSCI Europe ETF will become Vanguard FTSE Europe ETF. Vanguard MSCI Pacific ETF will become Vanguard FTSE Pacific ETF. The ETFs’ ticker symbols (VGK and VPL, respectively) will remain the same.
Vanguard recently disclosed expense ratio reductions for various share classes of the two funds, including the ETF share classes. In particular, VGK and VPL reported 2012 expense ratios of 0.12 per cent, a decline of two basis points from 2011. The current expense ratios of the funds will not be immediately affected by the transition, although Vanguard expects that the licensing agreements with FTSE will enable the firm to deliver lower costs over time.
Vanguard announced in October 2012 that 22 funds would be adopting new indexes.
