Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
SEC Plans To Approve Vanguard Request To List Actively Managed ETFs
The SEC said in the filing it would require Vanguard to disclose on its website the identities and quantities of the portfolio positions that would form the basis for the fund’s calculation of net asset value at the end of the day.
Interesting and Vanguard is willing to disclose this information on a daily basis.
Without reading the filing my guess is this will be for their quantitatively run active funds which own hundreds of stocks. Disclosing what they own on a daily basis is not as big of a deal as a concentrated fund that can't afford to have one of its largest positions front run.
Agree. Also I am not sure the motivation behind Vanguard to take on these new ETFs. As it stands they are gather asset faster than majority of brokerages. Schwab is coming on fast lately along with their competitive fees comparing to Vanguard.
I see no reference to Vanguard's patent that enables a shares of an individual fund to be sold both directly to investors (OEF shares) and in the secondary market (ETF shares).
The marketing section of the filing says that an ETF "Fund will not be advertised or marketed or otherwise 'held out' as shares of a traditional open-end investment company or a mutual fund." That seems to be different from what Vanguard does now with its ETFs.
For example, the web page for VOO holds it out as shares of a Vanguard 500, a traditional open-end investment company: "Also available as Admiral™ Shares and Investor Shares mutual funds."
So I'm guessing (as I said, clear as mud) that these are not going to be ETF shares of existing funds.
Comments
https://www.sec.gov/Archives/edgar/data/34066/000093247117005317/activeetfapp_clean.htm
I see no reference to Vanguard's patent that enables a shares of an individual fund to be sold both directly to investors (OEF shares) and in the secondary market (ETF shares).
The marketing section of the filing says that an ETF "Fund will not be advertised or marketed or otherwise 'held out' as shares of a traditional open-end investment company or a mutual fund." That seems to be different from what Vanguard does now with its ETFs.
For example, the web page for VOO holds it out as shares of a Vanguard 500, a traditional open-end investment company: "Also available as Admiral™ Shares and Investor Shares mutual funds."
So I'm guessing (as I said, clear as mud) that these are not going to be ETF shares of existing funds.