The FTSE Emerging Transition Index has been created to provide Vanguard with the ability to transition their existing emerging market funds to the FTSE Emerging Index. Its composition differs from FTSE’s existing Emerging Index in that it contains both P Chips¹ and Korean companies and is based on actual free float², and incorporates the indicative additions and deletions that will potentially be applied to the March 2013 index review. With effect from 18 March 2013, following the annual March 2013 index review, the indicative additions and deletions applied to the FTSE Emerging Transition Index will be replaced by actual additions and deletions arising from the index review.

The index will operate for approximately a six-month period, during which time all Korean companies will gradually be removed and the index constituents and weightings will be aligned with the official FTSE Emerging Index. More detail on the transition approach and the index methodology is available in the Ground Rules. These should be read in conjunction with the Ground Rules for the FTSE Global Equity Index Series, which govern the underlying FTSE Emerging Index.

Notes:

• With effect from 18 March 2013,'P Chips' which were listed in Hong Kong (Developed market) moved to China (Emerging market). See here for more information.
• To provide investors with a closer representation of free float in FTSE indices, FTSE moved to use actual free float percentages from 18 March 2013. See here for further details about this change.