News Summary: Vanguard switches fund benchmarks
BENCHMARK SWITCH: The Vanguard Group has negotiated lower cost index-licensing deals that will result in 22 of its index mutual funds switching to new benchmarks, and adjusting stock holdings accordingly.
NEW PARTNERS: The funds currently track indexes, or groups of stocks in certain market segments, licensed from the firm MSCI. Sixteen U.S. stock funds will switch to indexes from the University of Chicago's Center for Research in Security Prices, while six foreign stock funds will track FTSE indexes.
COST-CUTTING GOAL: Fee reductions are eventually expected for investors in the affected Vanguard funds, which hold a total $537 billion in assets.