Vanguard adopts float-adjusted benchmarks

Vanguard is to adopt float-adjusted benchmarks across nine of its bond index funds.

The firm will use Barclays Capital float-adjusted indices in place of the non-floats currently used as target benchmarks. Non-float adjusted indices can include securities which may be owned by private corporations and governments who have no intention of selling them. Vanguard believes all indices which follow best practices will eventually adjust to float, including only those securities available to investors. "Float-adjusted indices more accurately represent an investor's opportunity set in a particular market," Vanguard fixed income manager Didier Haencour says. "Using float-a...