Vanguard Shifts 2 ETFs To FTSE Indexes

By
March 27, 2013
Share:

Related ETFs

Ticker Fund name
VPLVanguard FTSE Pacific
VGKVanguard FTSE Europe
Related ETF Lists
Asia-Pacific ETFs, Europe ETFs

Developed-country ETFs ‘VGK’ and ‘VPL’ now track FTSE indexes.

Vanguard, the No. 3 U.S. exchange-traded fund sponsor by assets under management, today is shifting indexes on two developed-country ETFs to FTSE benchmarks from MSCI Inc. in the latest phase of implementation of its big index-change announcement on Oct. 2.

The Vanguard MSCI Europe ETF (NYSEArca: VGK) will now track the FTSE Developed Europe Index instead of the MSCI Europe Index. The fund’s name is being changed to the Vanguard FTSE Europe ETF, the company said today.

The Vanguard MSCI Pacific ETF (NYSEArca: VPL) will now track the FTSE Developed Asia Pacific Index, rather than the MSCI Pacific Index it used to track. The fund’s name has been changed to the Vanguard FTSE Pacific ETF.

Both tickers will remain unchanged, as well as the funds’ expense ratios, currently pegged at 0.12 percent, although Vanguard said in a release that it expects the transition to FTSE indexes to result in lower costs overtime.

Vanguard first announced last fall that it was dropping MSCI indexes on 22 funds, including the two above, for FTSE and University of Chicago-linked CRSP benchmarks, in a move designed to save investors money over the long term.

Of the 22 funds undergoing index changes, 16 are U.S.-focused portfolios and are shifting to benchmarks from CRSP. The other six, like the two above, are internationally focused portfolios that will be transitioning to benchmarks created by FTSE. Four U.S.-focused ETFs already had their indexes changed back in January to CRSP benchmarks.

Despite the transitioning benchmarks, Vanguard has still seen solid asset inflows into these 22 funds, which have attracted a combined $20 billion so far this year, the company said.

Investors have poured a net of $643 million into VGK since January 1, pushing the ETF above the $10 billion-in-assets mark. VPL, meanwhile, has seen net inflows of $185 million in the same period, and now has about $4.4 billion in total assets, according to data compiled by IndexUniverse.


ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

'EFA,' the developed-market fund that excludes North America, led inflows on Thursday, June 25. Total U.S.-listed ETF assets meanwhile fell to $2.162 trillion.

'EFA' paced iShares' issuer-leading inflows on Thursday, June 25, as total U.S.-listed ETF assets dipped to $2.162 trillion.

ETF.COM ANALYST BLOGS

By Drew Voros

Why is putting a client’s interest first not the industry standard?

By Matt Hougan

Contrarian plays, bad investing and authenticity in social media dominated the day.

By Dave Nadig

While they bring added risk, they can bring added returns.

By Olly Ludwig

The ETF world is a hotbed of interesting new ideas, as this week’s launches make clear.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

Smart beta appears to be poised for further growth.

By Dorsey Wright & Associates LLC

So many sectors, how do you choose? A quick guide from Dorsey Wright.

By Nasdaq Global Indexes

Bond exposure or bond performance? Only defined maturity indexes provide the latter.