Vanguard continues to ramp up its foray into active ETFs with the launch of three new Wellington-managed equity funds. The additions, which include the Vanguard Wellington U.S. Value Active ETF (BATS:VUSV), Vanguard Wellington U.S. Growth Active ETF (BATS:VUSG), and Vanguard Wellington Dividend Growth Active ETF (BATS:VDIG), bring the firm’s active equity roster to eight. It also marks another step in Vanguard’s evolution beyond low-cost index products.
The launch comes as investors pour into actively managed ETFs, fueling a record year of new offerings across the industry.
Vanguard’s expansion isn’t limited to equities. In recent months, the firm also launched several actively managed bond ETFs, including the Short Duration Bond ETF (BATS:VSDB), Multi-Sector Income Bond ETF (BATS:VGMS), Government Securities Active ETF (NYSE:VGVT), and High-Yield Active ETF (BATS:VGHY). Those additions bring Vanguard’s active fixed-income lineup to nine funds, underscoring its broader commitment to active management.
All three new equity ETFs are managed by Wellington Management, which was instrumental in Vanguard’s early history, including hiring future Vanguard founder John Bogle in 1951. Vanguard said the new ETFs are built on Wellington’s long-running mutual fund playbooks.
Dan Reyes, Vanguard’s global head of investment product, said the blending of Wellington’s research-driven process with the transparency and tax efficiency of the ETF structure should be a powerful combination that helps investors build better long-term portfolios.
Each of the new ETFs is based on a proven Wellington-run strategy. VUSV follows the same approach as Wellington’s slice of the Windsor Fund, aiming for 60 to 100 undervalued U.S. stocks benchmarked to the Russell 1000 Value Index. The expense ratio is 0.30%.
VUSG invests in 30 to 60 high-growth U.S. companies in a concentrated style similar to Wellington's portion of the Vanguard Global Equity Fund. It is benchmarked to the Russell 1000 Growth Index and charges a 0.35% fee.
VDIG shares the same management as the Dividend Growth Fund and invests in 20 to 40 high-quality companies with strong balance sheets and consistent records of dividend growth. It is benchmarked against the S&P U.S. Dividend Growers Index and has an expense ratio of 0.40%.
These three funds are designed to complement each other, Vanguard noted, and can serve as core building blocks within a diversified equity portfolio.
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