Vanguard this week said that it has negotiated lower cost index-licensing deals that will result in 22 of its index mutual funds switching to new benchmarks, and adjusting the stocks they invest in accordingly.
The changes are expected to eventually lead to fee reductions for investors in Vanguard funds holding $537 billion, or more than a quarter of the $1.95 trillion that the company manages in U.S. mutual funds and exchange-traded funds.
The benchmark changes affect all share classes for the 22 funds, including shares available to average investors, as well as those geared toward institutional investors, such as companies offering 401(k) plans. Also affected are Vanguard's ETF share classes of each fund.
Below are details on which funds will switch in coming months to new indexes from their current benchmarks licensed by the firm MSCI. The new indexes for the domestic funds listed below are licensed from the University of Chicago's Center for Research in Security Prices, or CRSP, while the international funds will track indexes licensed from the firm FTSE.
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