Vanguard dumps MSCI for FTSE

Gus Sauter
Gus Sauter

Vanguard Investments has replaced index benchmark provider MSCI with rival FTSE on six of its international equity funds.

The funds – including the world’s largest emerging market fund, the $67bn Vanguard Emerging Markets fund – will transition to benchmarks within the FTSE Global Equity index series.

Vanguard chief investment officer Gus Sauter says: “The FTSE indexes are well constructed, offer comprehensive coverage of their respective markets, and meet Vanguard’s ‘best practice’ standards for market benchmarks.

“The benchmarks offer comprehensive and diversified coverage of the international developed and emerging markets.”

The decision to choose FTSE Group indices, comes after a rigorous selection process by Vanguard, evaluating the quality and suitability of the respective indices. The move makes FTSE the third-largest equity exchange-traded fund (ETF) index benchmark provider globally.

FTSE Group chief executive Mark Makepeace says: “With the switch, FTSE will become the third-largest equity exchange traded product index benchmark provider globally, with more than $124bn in ETF assets benchmarked to FTSE indices.”