The Vanguard FTSE Emerging Markets Index ETF (VEE) will seek to track the FTSE Emerging Index as of 28 June 2013. The fund tracked the MSCI Emerging Markets Index prior to January.
During a six-month transition that started on 10 January 2013, the ETF tracked a custom benchmark, the FTSE Emerging Transition Index.
The portfolio managers were able to implement the transition cost-effectively with minimal market impact costs and negligible tracking error while allowing unitholders to see the ETF’s position.
As of 28 June, the ETF will have fully moved from the transition index to the FTSE Emerging Index.
The transition of the ETF to the FTSE Emerging Index concludes the benchmark changes announced by Vanguard Investments Canada in October 2012. Four ETFs began moving in January 2013 from tracking MSCI indexes to track indexes provided by FTSE and University of Chicago’s Center for Research in Security Prices (CRSP).
