The change is not expected to have an impact on the fund’s expense ratios.

The change will complete a transition that’s designed to offer investors increased diversification and bring the fund to market-cap weightings. Since December 2015, the $58 billion fund has tracked a transition index while portfolio managers gradually increased exposure to small-cap and Canadian companies and also proportionally reduced the weightings of other equities.

The fund’s new benchmark represents the performance of large-, mid-, and small-cap companies in developed markets, including Canada but excluding the United States. The index comprises approximately 3,700 securities from 24 countries.

More diversification

The new benchmark’s 10.6% exposure to small-cap stocks moves the fund closer to market-cap weightings while also offering additional diversification. With the addition of Canada, which represents approximately 8.3% of the benchmark, the fund will be the largest market-cap-weighted index fund of its type to offer all-cap exposure to all developed markets outside of the United States*.

The change represents the third of four changes to all-cap benchmarks announced by Vanguard in June 2015. In 2015, Vanguard European Stock Index Fund (VEURX) and Vanguard Pacific Stock Index Fund (VPACX) transitioned to new benchmarks.

The fourth fund, Vanguard Emerging Markets Stock Index Fund (VEIEX), is in the midst of a transition that is adding exposure to China A-Shares as well as small-cap equities.

*Source: Bloomberg, as of April 30, 2016

All asset figures as are of April 30, 2016, unless otherwise noted.

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (who may charge commissions). See the Vanguard Brokerage Services Commission and Fee Schedules on for limits. Vanguard ETF Shares are not redeemable directly with the issuing Fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.

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 and, in particular, in countries where market controls may impede investment.