Price behind world's biggest benchmark switch: Vanguard
The indexing firm admits price, not performance, is the key factor in dropping MSCI as its benchmark provider on 22 US-domiciled index funds.
US-based indexing specialist Vanguard Investments has confirmed that its decision to drop MSCI for FTSE as benchmark provider for six international equity index funds was chiefly price-driven.
But Robin Bowerman, Vanguard’s head of market development and corporate affairs based in Australia, also notes it fundamentally agrees with FTSE that South Korea is a developed market and should not be in an EM index. MSCI currently includes Korea in its emerging markets index.
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