BigMoneyJim
Thinks s/he gets paid by the post
Edit: The profanity filter strikes again. Market-watch is printing as Markethingych. (Took me 5 minutes to figure out why the filter modified it!)
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I don't closely track my investments, and this startled me.
Vanguard is changing the benchmark index (link to CBS Marketwatch story) for several of their funds from S&P indexes to the new MSCI indexes:
The biggie Index 500 (VFINX) will still be based on the S&P 500, though, and my Extended Market Index Fund (VEXMX) is still toal market minus the S&P 500, so luckily my two main index funds aren't changing.
This Marketwatch article (link) offers a different angle on the change, especially how Vanguard is mad at Standard and Poor over not being able to sell ETFs based on the S&P 500 without paying more licensing fees.
I'm in index funds for stability; if I was in one of the changing funds I'd be wound up about what to do and worrying about the other shareholders suddenly pulling out large sums of money and killing my NAV, or if I were in non tax sheltered accounts then I'd worry about extra capital gains hits both on the conversion turnover and covering panicky selloffs. But maybe I'm just paranoid and should start investing more conservatively like johngalt.
I found these articles on CBS Marketwatch through Yahoo! Finance. I went to Vanguard's site to find links for this post but couldn't find a related story or press release! Maybe I didn't look in the right places.
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I don't closely track my investments, and this startled me.
Vanguard is changing the benchmark index (link to CBS Marketwatch story) for several of their funds from S&P indexes to the new MSCI indexes:
The specific funds are Value Index (VIVAX), Growth Index (VIGRX), Mid Capitalization Index (VIMSX), Small Cap Index (NAESX), Small Cap Value Index (VISVX) and Small Cap Growth Index (VISGX).
The biggie Index 500 (VFINX) will still be based on the S&P 500, though, and my Extended Market Index Fund (VEXMX) is still toal market minus the S&P 500, so luckily my two main index funds aren't changing.
This Marketwatch article (link) offers a different angle on the change, especially how Vanguard is mad at Standard and Poor over not being able to sell ETFs based on the S&P 500 without paying more licensing fees.
I'm in index funds for stability; if I was in one of the changing funds I'd be wound up about what to do and worrying about the other shareholders suddenly pulling out large sums of money and killing my NAV, or if I were in non tax sheltered accounts then I'd worry about extra capital gains hits both on the conversion turnover and covering panicky selloffs. But maybe I'm just paranoid and should start investing more conservatively like johngalt.
I found these articles on CBS Marketwatch through Yahoo! Finance. I went to Vanguard's site to find links for this post but couldn't find a related story or press release! Maybe I didn't look in the right places.