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Vanguard Reportedly Mulls Licensing ETF Structure To USAA
"Unlike Eaton Vance’s (EV) recently approved NextShares products, Vanguard share-class structure doesn’t shield a managers’ holdings from daily view."
This is an interesting point. Vanguard doesn't care with its ETFs, because they're share classes of its index funds. Index ETFs are not required to publish their portfolios daily, and in fact Vanguard is one of the few fund sponsors (the only one I know of) that does not publish its ETF holdings daily. Rather, it publishes the ETF's holdings quarterly, with a 30 day lag.
The USAA funds, being actively managed, would be required to publish daily portfolios.
This licensing is good news for Vanguard investors, who (as owners of the Vanguard Group) should benefit from Vanguard monetizing its patent.
Comments
This is an interesting point. Vanguard doesn't care with its ETFs, because they're share classes of its index funds. Index ETFs are not required to publish their portfolios daily, and in fact Vanguard is one of the few fund sponsors (the only one I know of) that does not publish its ETF holdings daily. Rather, it publishes the ETF's holdings quarterly, with a 30 day lag.
The USAA funds, being actively managed, would be required to publish daily portfolios.
This licensing is good news for Vanguard investors, who (as owners of the Vanguard Group) should benefit from Vanguard monetizing its patent.