VALLEY FORGE, PA (June 27, 2018) — Vanguard today filed a preliminary registration statement with the Securities and Exchange Commission for Vanguard ESG U.S. Stock ETF and Vanguard ESG International Stock ETF. The new ETFs will complement Vanguard’s existing FTSE Social Index Fund and are expected to begin trading in September 2018.
Vanguard ESG U.S. Stock ETF will seek to track the FTSE US All Cap Choice Index, a market-cap weighted benchmark comprising large-, mid-, and small-cap U.S. stocks screened on specific environmental, social, and governance criteria. Vanguard ESG International Stock ETF’s target benchmark will be the FTSE Global All Cap ex US Choice Index, a market-cap weighted benchmark comprising large-, mid-, and small-cap stocks in developed and emerging international markets (excluding the U.S.) screened on specific environmental, social, and governance criteria. The estimated expense ratios for the new ETFs are 0.12% and 0.15%, respectively, making them among the lowest-cost ESG offerings available to investors.
“The adoption of ESG investing has accelerated in recent years, and more investors are looking for opportunities to align their investment choices with their values,” said Jon Cleborne, head of Vanguard’s Portfolio Review Group. “Our new ETFs marry Vanguard’s characteristic low-cost, diversified investment approach with a rigorous ESG screening process.”
In the development of the benchmarks, FTSE screens its broad domestic and international stock indexes and excludes stocks of companies in the following industries: adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power. The construction methodology also screens the stocks of companies that do not meet certain diversity criteria as well as labor, human rights, anti-corruption and environmental standards defined by the U.N. global compact principles.
Vanguard’s Equity Index Group will serve as the investment advisor for both ETFs. The Equity Index Group manages more than $3.1 trillion in assets across the globe, and draws on the diverse perspectives and knowledge of more than 75 team members to help deliver accurate benchmark tracking, prudent risk management, and highly competitive investment performance.
Vanguard is one of the world’s largest investment management companies. As of May 31, 2018, Vanguard managed $5.1 trillion in global assets, including more than $936.7 billion in ETFs. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 397 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com.
Asset figures as of May 31, 2018, unless otherwise noted.
For more information about Vanguard funds and ETFs, visit vanguard.com or call 800-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. Copies of the final prospectus can be obtained from Vanguard. Please note that a preliminary prospectus is subject to change.
A registration statement relating to the Vanguard ETF shares has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.
U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; and 8,417,623. Vanguard Marketing Corporation, Distributor of the Vanguard Funds.
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Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. These risks are especially high in emerging markets.
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