MSCI, a provider of U.S. equity, international equity, fixed-income, and hedge fund indexes, has announced Vanguard Group's adoption of its U.S. Broad Market Index as the target benchmark for index funds with assets totaling more than $60 billion at Dec. 31.
This adoption will more than double the assets benchmarked to the MSCI U.S. equity indexes, to $110 billion, the company said on Tuesday.
Gus Sauter, Vanguard's chief investment officer, said in a press release that the MSCI index is "well-constructed" and will "enhance our all-market index fund offerings. With the addition of this index, we will now offer 21 U.S. equity index funds tracking MSCI benchmarks."
The MSCI U.S. Broad Market Index has been calculated since May 30, 2003, as an aggregation of the MSCI U.S. Large Cap 300, Mid Cap 450, Small Cap 1,750, and Micro Cap indexes. It represents about 99.5% of the market capitalization of the U.S. equity market.
