Vanguard to close an ETF for the first time
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Vanguard has announced it intends to close an exchange traded fund, marking a first for the asset manager despite its 20 years in the market.
The firm intends to liquidate the $44mn Vanguard US Liquidity Factor ETF in November, the firm announced.
The firm continues to support factor investing, the press release states.
However, at least one analyst is not sure about the firm’s commitment to a suite of products that have not been the blockbusters that investors and market watchers have come to expect from the asset management group.
“Poor performance, low usage (assets) and the manager departure are not unique to Liquidity Factor ETF, which would argue for this being a sign of things to come,” said Jeffrey DeMaso, head of research at Adviser Investments. For example, another fund in the suite, the US Minimum Volatility ETF, had just $69mn in assets as of the end of August, he noted, citing data from Adviser Investments’ database.
This story originally appeared on: Financial Times - Author:Jackie Noblett
