As a part of our voluntary, opt-in program, investors in select equity index funds can choose to participate in the proxy voting process more directly and express how the fund should vote their proportionate holdings on matters raised at portfolio company shareholder meetings. These matters may include the election of the company’s directors, the ratification of the company’s independent auditor, and votes on executive compensation. There may also be proposals submitted by company management and other shareholders on a wide variety of matters.
In early 2024, millions of eligible investors in five equity index funds will receive an invitation to select a proxy voting policy via a secure website. Investors in the following funds, which represent over $100 billion in combined assets under management1, will be able to choose from four different proxy voting policy options that direct how the fund votes, proportionate to the investor’s ownership of the fund:
- Vanguard S&P 500 Growth Index Fund
- Vanguard Russell 1000 Index Fund
- Vanguard ESG U.S. Stock ETF
- Vanguard Mega Cap Index Fund*
- Vanguard Dividend Appreciation Index Fund*
Expanding proxy voting choices to more investors is a continuation of Vanguard’s effort to give individuals the information and the options they need to help ensure that their investment portfolios reflect their investment goals and preferences. We recognize that our investors have diverse perspectives, and we are committed to further engagement and exploration in this area to ensure our clients’ needs are met.