Vanguard has swapped benchmarks for its Emerging Markets index fund. In this case, though, the move will leave the $ 9.6 billion index fund under the control of the index-makers at MSCI.

MSCI had provided a custom benchark based on its MSCI Emerging Markets Index (the Select Index) for the fund since Vanguard launched it in 1994. In the decade since growing liquidity in foreign markets has led Vanguard to ease the restrictions it has on the funds investments. Most recently, the fund was opened to investing in Russia and Malaysia. With those additions, the Select Index essentially mirrors the Emerging Markets Index, explained Vanguard Chief Investment Officer Gus Sauter.

That means that Vanguard can now peg the fund to the standard index. 

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