Vanguard Switches Benchmark for Some Index Funds

Mutual fund company drops MSCI to cut costs.

Vanguard Group Inc., the largest U.S. mutual-fund provider, will drop MSCI Inc. as the benchmark provider for 22 index funds holding about $537 billion in assets, to cut costs for fund shareholders over time.

Vanguard will adopt benchmarks from FTSE Group for six international stock index funds, and benchmarks developed by the University of Chicago’s Center for Research in Security Prices for 16 U.S. equity and balanced funds, the Valley Forge, Pennsylvania-based firm said today in a statement.

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