Vanguard plans name changes for multiple U.S. equity index funds after Morningstar rebranded its CRSP Market Indexes to Morningstar Indexes, the asset manager announced Wednesday.
"Morningstar" will be added to the names and corresponding indexes for Vanguard U.S. equity index funds tracking those benchmarks. Vanguard Total Stock Market Index Fund will become Vanguard Morningstar Total Stock Market Index Fund, for example.
Vanguard expects the changes in July and said they won't affect the funds themselves.
"Index funds are designed to give investors broad, low‑cost exposure to the markets, and that starts with the quality of the benchmarks they track," said Rodney Comegys, Vanguard Capital Management chief investment officer and global equity head. "The Morningstar Indexes incorporate disciplined, rules‑based approaches that align with Vanguard's long‑standing views on index construction and help ensure our funds remain investable and representative over time."
Multiple Vanguard U.S. equity index funds started tracking the CRSP benchmark indexes, which blend academic research with industry best practices in index construction methods, in 2013, the asset manager said.
"At Morningstar Indexes, our focus is on building benchmarks that investors and asset managers can rely on over time," said Amelia Furr, Morningstar Indexes president. "Our rules‑based approach, emphasis on investability, and thoughtful rebalancing practices are designed to support efficient implementation and long‑term investing — principles that align closely with Vanguard's index investing philosophy."
The changes will touch $3.2 trillion in assets across 13 funds, Jeff DeMaso, editor of The Independent Vanguard Adviser, wrote in his newsletter.
"To be clear, nothing changes for investors. Fees, benchmarks and managers stay the same. It's just a new name. But it's a notable one," he said.
DeMaso noted that Vanguard's core U.S. stock index lineup now splits into three index-provider-branded series: Morningstar, Standard & Poor's and Russell. Two major funds tracking S&P benchmarks keep the Vanguard-only name, he said.
"Frankly, this feels more like a win for Morningstar than for Vanguard," DeMaso wrote.
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