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M*: A Closer Look At Vanguard's Active Factor ETFs

FYI: In February 2018, Vanguard launched a suite of promising, actively managed factor exchange-traded funds. These factor ETFs are not active in the traditional sense. They are systematic, rules-based strategies, so there are no qualitative judgments about the investment merit of each stock. But the managers have discretion to rebalance the portfolios (or not) when they see fit, which should help reduce implementation costs.

The Vanguard Quantitative Equity Group, which oversees the new funds, has managed similar factor ETFs listed in Europe since December 2015.
Regards,
Ted

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