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LONDON - Vanguard Funds plc has informed shareholders of upcoming changes to the index exclusion methodology for several of its Ireland-domiciled ESG exclusionary index funds, according to an announcement made on February 26, 2025. These adjustments will be implemented during the March 2025 rebalance and are set to impact funds linked to both FTSE and Bloomberg indices.
The changes to the FTSE index methodology will be effective from March 24, 2025, and will affect the following ETFs:
- Vanguard ESG Developed Asia Pacific All Cap UCITS ETF
- Vanguard ESG Developed Europe All Cap UCITS ETF
- Vanguard ESG Emerging Markets All Cap UCITS ETF
- Vanguard ESG Global All Cap UCITS ETF
- Vanguard ESG North America All Cap UCITS ETF
Additionally, modifications to the Bloomberg index methodology will take place on March 31, 2025, influencing these ETFs:
- Vanguard ESG EUR Corporate Bond UCITS ETF
- Vanguard ESG Global Corporate Bond UCITS ETF
- Vanguard ESG USD Corporate Bond UCITS ETF
These updates are part of Vanguard’s ongoing efforts to refine its investment products and ensure that they align with evolving standards and investor expectations regarding environmental, social, and governance (ESG) criteria. The specific details of the methodology changes have not been disclosed in the announcement.
Shareholders of the affected sub-funds were notified by a letter from the Board on February 24, 2025, with a view to providing them with adequate information and time to understand the implications of these changes on their investments.
Vanguard has established itself as a major player in the investment fund sector, offering a variety of funds that cater to the growing demand for socially responsible and sustainable investment options. As index providers like FTSE and Bloomberg update their criteria for ESG investments, fund managers like Vanguard must adapt their products to maintain alignment with these benchmarks.
The announcement is based on a press release statement and reflects Vanguard’s commitment to transparency with its investors. The modifications to the index methodologies underscore the dynamic nature of ESG investing, as standards and investor expectations continue to evolve.
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