Starting in 2018, Vanguard will introduce active management into its U.S.-listed lineup of ETFs.
The $4.8 trillion Valley Forge, Pa.-based asset manager announced on Tuesday plans to launch a six-ETF suite of actively managed, factor-based funds. The firm already offers active factor ETFs in Canada and the U.K.
Five of the funds will be managed using quantitative strategies to achieve exposures to single investment factors:
- Vanguard U.S. Minimum Volatility ETF
- Vanguard U.S. Value Factor ETF
- Vanguard U.S. Momentum Factor ETF
- Vanguard U.S. Liquidity Factor ETF
- Vanguard U.S. Quality Factor ETF
The five single-factor ETFs will carry an estimated expense ratio of 0.13 percent.
In addition, Vanguard will launch a multifactor strategy available as an ETF, the Vanguard U.S. Multifactor ETF, and as a mutual fund, the Vanguard U.S. Multifactor Fund. The two funds will have an estimated expense ratio of 0.18 percent.
All of the new strategies will be managed by the Vanguard Quantitative Equity Group (QEG), which already manages nearly $35 billion in assets in Vanguard’s Canadian- and U.K.-listed factor funds and in the U.S.-listed Vanguard Global Minimum Volatility Fund.