REIT fund changes investment objective, name, and index

February 2, 2018

 

Effective immediately, Vanguard® REIT Index Fund will change its investment objective and name and begin the transition process to a new benchmark.

The new objective will allow the fund to invest in a wider array of real estate-related securities such as certain specialized REITs and real estate management and development companies. Accordingly, the fund will change its benchmark from the MSCI US REIT Index to the MSCI US Investable Market Real Estate 25/50 Index.

To ensure a smooth transition to the new benchmark, the fund will temporarily track the MSCI US Investable Market Real Estate 25/50 Transition Index. The fund is expected to complete the transition to the MSCI US Investable Market Real Estate 25/50 Index over a period of roughly six months, which will end in the third quarter of 2018.

Share classTicker
ETFVNQ
Admiral™ VGSLX
Institutional VGSNX
Investor VGSIX

With the adoption of the transition index, the fund’s name has changed to more accurately reflect its underlying investments.

Previous nameNew name
Vanguard REIT Index FundVanguard Real Estate Index Fund

Vanguard does not expect the transition to result in material capital gains distributions to the fund’s shareholders. However, actual results will depend on multiple variables, most importantly market conditions during the time of the transition.

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.
  • Diversification does not ensure a profit or protect against a loss.
  • Vanguard ETF® Shares are not redeemable with the issuing fund other than in very large aggregations worth millions of dollars. Instead, investors must buy or 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.
  • The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. The prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Vanguard and any related funds.
 

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