The Vanguard Tax-Managed International Fund will seek to track the FTSE Developed ex North America Index, effective 29 May 2013.
The target benchmark of the USD15.7bn Tax-Managed International Fund was previously the MSCI EAFE Index. The FTSE benchmark provides similar exposure to large-capitalisation companies in developed markets outside of the US 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 per cent, a decline of two 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.