But the firms giant $66.8 billion Vanguard 500 Index Fund will continue to use the S&P 500 index.
Gus Sauter, Vanguards chief investment officer, said over the long term the new indices will bring lower turnover and moderately lower transaction costs. But in the transition period, turnover of affected funds will range between 20% and 70%, increasing transaction costs.
"The biggest change is that they are adding more tech on the growth side and taking tech out on the value side," Daniel Wiener, editor of The Independent Adviser for Vanguard Investors, told Reuters.