VALLEY FORGE, PA — Vanguard announced plans to seek shareholder approval to change the diversification status of both the ETF and mutual fund share classes of its Health Care Index Fund (ETF: VHT, Admiral: VHCIX) and Financials Index Fund (ETF: VFH, Admiral: VFAIX) from diversified to non-diversified. The proposal requires a shareholder vote.
The move comes as increasing concentration within benchmark indexes limits the funds’ ability to invest in securities at weights that match their benchmarks. If approved, the change would allow portfolio managers to invest directly in securities at benchmark-proportional weights, potentially improving tracking performance.
The Board of Trustees supports the change, stating it would better align the funds with their target indexes and serve shareholder interests.
Shareholders of record as of August 26, 2025, will be eligible to vote ahead of and during the virtual shareholder meeting on November 4, 2025. Votes may be cast online, by phone, through the mail, or during the meeting.
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