Vanguard changing target benchmarks of 4 ETFs

Vanguard Investments Canada plans to transition four Vanguard TSX-listed exchange-traded funds to benchmarks developed by FTSE and the University of Chicago’s Center for Research in Security Prices (CRSP).

The funds include the:

• Vanguard MSCI Canada Index ETF, which will be renamed as the Vanguard FTSE Canada Index ETF;
• Vanguard MSCI U.S. Broad Market Index ETF (CAD-hedged), which will be renamed as the Vanguard CRSP US Total Market Index ETF (CAD-hedged);
• Vanguard MSCI EAFE Index ETF (CAD-hedged), which will be renamed as the Vanguard FTSE Developed ex North America Index ETF (CAD-hedged); and
• Vanguard MSCI Emerging Markets Index ETF, which will be renamed as the Vanguard FTSE Emerging Markets Index ETF

The transition is expected to provide cost savings over time for the ETFs.

Read: Vanguard doubles Canadian ETF lineup

“The indexes from FTSE and CRSP offer comprehensive coverage of their respective markets, and meet Vanguard’s best practice standards for market benchmarks,” says Gus Sauter, chief investment officer of The Vanguard Group. “We negotiated licensing agreements for these benchmarks.”

In addition, he says the CRSP’s capitalization-weighted methodology uses the concept of ‘packeting’, designed to cushion the movement of stocks between adjacent indexes and allow holdings to be shared between two indexes of the same family.

The company plans to transition another 22 U.S.-domiciled index funds/ETFs to the FTSE and CRSP benchmarks.

Staff

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