Cheaper Indexes, Cheaper Funds

Vanguard will change the benchmarks it uses for index funds and exchange-traded funds to cut costs and save money for investors.

What’s in a benchmark? Fees, apparently. In a move to cut costs and save investors money, Vanguard says it will change the benchmarks it uses for 22 of its index mutual funds and 18 exchange-traded funds.

For six foreign-stock index funds, Vanguard will adopt FTSE benchmarks to replace the current MSCI bogeys. And for 16 of its U.S. stock and balanced funds, it will adopt new indexes from the University of Chicago’s Center for Research in Security Pricing (CRSP).

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.