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Lack of interest sinks Vanguard's multi-factor active ETF

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Vanguard is terminating its multi-factor active ETF.

The Vanguard Global Multi-Factor Active ETF (managed fund) (VGMF) is being terminated next month, three years after listing as the first of its kind on the ASX.

This ETF is due to be suspended from quotation on the ASX and removed from trading status after the close of trading on 22 June 2022.

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According to Vanguard, the decision was made after “careful consideration” and is based on the fund’s low asset growth since inception, client and market feedback, and modest anticipated future client demand.

In a written statement emailed to InvestorDaily, a Vanguard spokesperson said that while the firm believes there is an enduring investment case for factor investing alongside strong investor interest in single factor strategies, “this all-in-one multi-factor strategy has not gained traction with Australian investors”.

“This has significantly impacted the fund’s current and future viability, which is why it is in the best interests of investors to close the multi-factor fund and ETF at this time,” the spokesperson said.

“We remain committed to the research, development and enhancement of products that give investors the best chance of investment success”.

Vanguard confirmed it will begin selling down the assets of the Vanguard Global Multi-Factor Active after close of trading on 22 June 2022.

“Investors will be paid a special distribution between 2 and 10 June 2022 ahead of the closure and a final distribution between 4 and 13 July 2022 where all proceeds will be returned to investors in the respective funds on a pro-rata basis,” a statement issued by the firm reads.

The VGMF held $47 million in funds under management as at 30 April.

Lack of interest sinks Vanguard's multi-factor active ETF

Vanguard is terminating its multi-factor active ETF.

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Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.

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