I just saw a note at vanguard.com that they are changing the benchmark indices for 22 funds, including some of the core boglehead funds (VGTSX, VISVX, VTSMX). It seems in general that they're ditching MSCI in favor of FTSE and CRSP indices. Explanation is lower licensing fees, and a mild implication that the new indices are better. The notice is at http://www.vanguard.com/us/insights/art ... t-10022012
Does this change matter at all? Is it unmitigated improvement (due to lower costs) or is there any cause for concern?
(Apologies if this has already been discussed; I searched but didn't find anything.)
Vanguard changing benchmark indexes -- any concerns?
Re: Vanguard changing benchmark indexes -- any concerns?
I just saw that myself. Like all changes, we will have to see where it goes but my first impression after reading it is I am not concerned about the downside. In fact, I thought to myself this is something John Bogle would do to lower costs.
Re: Vanguard changing benchmark indexes -- any concerns?
A very lengthy and very, very detailed thread on this subject
http://www.bogleheads.org/forum/viewtop ... 0&t=103605
http://www.bogleheads.org/forum/viewtop ... 0&t=103605
Re: Vanguard changing benchmark indexes -- any concerns?
The link in human readable form: Shifts in VG Tracking Indexes Announced
(Thread locked to redirect responses there.)
(Thread locked to redirect responses there.)