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

The four affected ETFs currently use benchmark from MSCI. The funds will be renamed to reflect their new benchmarks:

  • Vanguard MSCI Canada Index ETF (VCE) becomes Vanguard FTSE Canada Index ETF;
  • Vanguard MSCI U.S. Broad Market Index ETF (VUS) becomes Vanguard CRSP US Total Market Index ETF;
  • Vanguard MSCI EAFE Index ETF (VEF) becomes Vanguard FTSE Developed ex North America Index ETF; and
  • Vanguard MSCI Emerging Markets Index ETF (VEE) becomes Vanguard FTSE Emerging Markets Index ETF.

The transition, which will be staggered over several months and should be completed by mid- 2013, is expected to provide cost savings over time for the ETFs.

“The indexes from FTSE and CRSP are well constructed, 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, Inc.

“Equally important, and with our clients’ best interests in mind, we negotiated licensing agreements for these benchmarks that we expect will enable us to deliver significant value to our ETF investors.”

Vanguard also plans to transition 22 U.S.-domiciled index funds/ETFs to FTSE and CRSP benchmarks.