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Vanguard Wellington U.S. Value Active ETF (VUSV), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington Dividend Growth Active ETF (VDIG)
Wonder why Vanguard didn't launch (the new ETF) VDIG as an affiliated share class with (the old mutual fund) VDIGX? That would have permitted easy exchanges from VDIGX to VDIG.
VUSV (ER 0.30%) will use Russell 1000 value index as the benchmark. Close cousin OEF is Vanguard Windsor fund
VUSG (ER 0.35%) will use Russell 1000 growth index as the benchmark. Close cousin OEF is Vanguard Global Equity fund, but it is co-managed with several non-Wellington managers.
VDIG (ER 0.40%) will use similar strategy as Vanguard Dividend Growth fund.
Jeff DeMaso reported that incorrect expense ratios were listed in the regulatory filings for these ETFs.
"Vanguard’s initial regulatory filings (on Thursday, Nov. 13) listed expense ratios between 0.13% to 0.17% for the new ETFs. The numbers caught my eye immediately; it looked like Vanguard was coming out swinging on fees—undercutting the competition by a mile. (Though I was skeptical and said so.) But no. Those ultra-low fees were, as Vanguard later admitted, the result of a 'human error.'"
"The correct expense ratios are between 0.30% and 0.40%—still competitive, but not industry-shaking."
"Look, everyone makes mistakes.But this episode is yet another reminder that Vanguard’s tech and operations still aren’t as buttoned-up as they should be. For a firm managing trillions, the margin for error should be a lot smaller."
Active managed stock funds typically range from 0.30 - 0.80% with int’l or global exposure may add another 0.1-0.2%. Vanguard active OEFs are pretty low in the industry, so there may not be much room to work with. The range at 0.13-0.17% is too good to be true.
Very weird, about VDIG having an ER of .40 with, as the announcement states ,having the same managers and essentially the same strategy as VDIGX which has an ER of .22. Have owned it for 20 years but will be sold this year because of large off selling and large capital gains as a result. Am considering adding to DGRW or venturing into VIG or DGRO after due diligence.
Comments
Wonder why Vanguard didn't launch (the new ETF) VDIG as an affiliated share class with (the old mutual fund) VDIGX? That would have permitted easy exchanges from VDIGX to VDIG.
VUSV (ER 0.30%) will use Russell 1000 value index as the benchmark. Close cousin OEF is Vanguard Windsor fund
VUSG (ER 0.35%) will use Russell 1000 growth index as the benchmark. Close cousin OEF is Vanguard Global Equity fund, but it is co-managed with several non-Wellington managers.
VDIG (ER 0.40%) will use similar strategy as Vanguard Dividend Growth fund.
"Vanguard’s initial regulatory filings (on Thursday, Nov. 13) listed expense ratios
between 0.13% to 0.17% for the new ETFs. The numbers caught my eye immediately;
it looked like Vanguard was coming out swinging on fees—undercutting the competition by a mile.
(Though I was skeptical and said so.) But no.
Those ultra-low fees were, as Vanguard later admitted, the result of a 'human error.'"
"The correct expense ratios are between 0.30% and 0.40%—still competitive, but not industry-shaking."
"Look, everyone makes mistakes. But this episode is yet another reminder that Vanguard’s tech
and operations still aren’t as buttoned-up as they should be.
For a firm managing trillions, the margin for error should be a lot smaller."
https://www.independentvanguardadviser.com/weekly-brief-vanguards-filing-fumble-cash-yield-cut/
Active managed stock funds typically range from 0.30 - 0.80% with int’l or global exposure may add another 0.1-0.2%. Vanguard active OEFs are pretty low in the industry, so there may not be much room to work with. The range at 0.13-0.17% is too good to be true.