FTSE licenses four indices to Vanguard for new ETFs

22 May 2013

  • FTSE indices to expand range of Vanguard ETFs
  • Europe, Asia Pac, Japan and All-World indices chosen

FTSE Group ("FTSE"), the global index provider, today announces that it has licensed four more indices to Vanguard as the basis for a new range of international Exchange Traded Funds (ETFs). This brings the number of ETFs based on FTSE indices globally to over 200, including 11 provided by Vanguard.

Vanguard, one of the three largest US asset management firms, will adopt the following indices from FTSE’s All-World and All-World High Dividend Yield Index Series, for the creation of UCITS ETFs:

  • FTSE Developed Europe Index
  • FTSE Developed Asia Pacific ex Japan Index
  • FTSE Japan Index
  • FTSE All-World High Dividend Yield Index

Jonathan Horton, President, FTSE Americas and Head of FTSE’s ETP Service Unit, said: "We are delighted that Vanguard has selected FTSE to help develop its European product suite. FTSE’s focus on providing the highest quality indices, coupled with our dedication to service provision, tradability and index governance makes FTSE a natural choice for ETF issuers who want to give investors better choice, no matter where in the world they are, or where they want to invest."

Axel Lomholt, Vanguard’s Head of International Product Development and Management, commented: "FTSE offers best-in-class index construction and its benchmarks provide comprehensive coverage of their respective markets. Vanguard is pleased to extend its deep relationship with FTSE as it continues to extend its straightforward, low-cost ETF range across Europe."

The FTSE All-World Index Series measures the performance of over 2,800 large and mid cap stocks in developed and emerging markets, and covers around 90%-95% of the world’s investible market capitalization. FTSE Developed Europe, FTSE Developed Asia Pacific ex Japan, FTSE Japan indices are part of FTSE All-World Index Series.

The FTSE All-World High Dividend Yield Index measures the performance of companies after implementing a forecast dividend yield ranking process. The Index comprises stocks that are characterised by a higher than average dividend yield based on the FTSE All-World Index.

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