Vanguard Emerging Markets ex-China ETF Moves to Capped FTSE Index

Vanguard will change the target index of its Emerging Markets ex-China ETF from the FTSE Emerging ex-China Index to the FTSE Emerging ex-China RIC 22.5/45 Capped Index, with implementation expected in Q4 2026. Vanguard says the new benchmark will represent the same emerging-market segments, but its capped methodology could produce different returns and volatility. The transition is not expected to increase the ETF’s expense ratio, although portfolio changes could generate taxable capital gains and potential distributions to shareholders. Vanguard is also shifting the fund’s fiscal year-end from August 31 to September 30, while its investment objective and principal strategy remain unchanged.