Vanguard has finished a change in one of its index funds. The firm completed the transition of its Vanguard Developed Markets Index Fund from investing directly in individual stocks and/or a combination of Vanguard mutual funds to investing substantially all of its assets directly in the common stocks included in its target index, according to an SEC filing.

The fund's underlying index and overall investment objectives will remain unchanged.

Vanguard first revealed its intentions to change the structure of the fund in a March release. The impetus behind the structural change appears to be that the new structure allows the funds to pass through foreign taxes paid on the directly held securities. Thus, investors can credit these taxes against their tax liability or take a deduction against their taxable income. The adjustments are not expected to have any impact on the fund’s existing expense ratio.  

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