VALLEY FORGE, Pa., September 26, 2022 /PRNewswire/ — Vanguard announced today that the $44.2 million The Vanguard US Liquidity Factor ETF will be liquidated at the end of November. The decision was made as part of Vanguard’s ongoing, comprehensive review of its global product range to ensure each fund and ETF meets the evolving needs of clients.
“We continue to add new products that have investment merits and meet investor preferences, change advisors and mandates to improve investor outcomes, and eliminate funds that have no particular role in investors’ portfolios,” he said Dan Reyes, Vanguard’s Head of Portfolio Review. “Despite the ETF’s knowledgeable advisor and solid approach to factor investing, it hasn’t grown in size since it debuted in 2018.”
Vanguard continues to believe in the long-term case for factor investing. Given the right circumstances, factor products can help investors achieve their financial goals. The company stays US Factor Products have combined $3.4 billion in assets and continues to provide value to a broad range of advisors and private clients by employing a cost-effective, fully capitalized, rules-based approach that provides investors with targeted factor exposure. The ETFs are actively managed by Vanguard Quantitative Equity Group, allowing for daily portfolio assessment and potential rebalancing to mitigate factor drift. Taken together, this approach allows investors to focus on factors more efficiently.
Shareholders will be notified and have the opportunity to sell their shares prior to the ETF’s delisting from the Cboe BZX Exchange, Inc. at close of business on or about this November 22, 2022. On the liquidation date, the remaining ETF assets are sold and the proceeds distributed.
Oversight is provided by Vanguard Quantitative Equity Group’s team of experienced strategists, analysts and portfolio managers $46.6 billion over 30 mandates with the aim of generating alpha through sophisticated investment strategies. The team’s collaborative, integrated approach and risk-controlled, cost-effective investment process means that all team members work together towards the common goal of generating excess returns for clients.
Founded in 1975, Vanguard is one of the world’s leading investment management firms. The company provides investment, advisory and retirement services to individual investors, institutions and financial professionals. Vanguard operates under a unique investor-owned structure where shareholders in Vanguard funds own the funds, which in turn own Vanguard. As such, Vanguard’s goal is simple: to advocate for all investors, treat them fairly and give them the best chance of investment success. Visit vanguard.com for more information.
All figures stand August 31, 2022unless otherwise stated.
For more information about Vanguard funds, visit vanguard.com for a prospectus or summary prospectus, where available. Investment objectives, risks, charges, expenses and other important information about a fund are set out in the prospectus; Read and think carefully before investing.
Vanguard ETF shares can only be redeemed from the issuing fund in very large aggregations of millions of dollars. Instead, investors must buy and sell Vanguard ETF shares on the secondary market and hold those shares in a brokerage account. Investors may incur brokerage commissions and may pay more than the Net Asset Value when buying and receive less than the Net Asset Value when selling.
All investments are subject to risk, including the possible loss of the money you invest.
The Factor Funds are subject to investment style risk, which is the chance that returns on the types of stocks in which a Factor Fund invests will lag returns in US stock markets. The Factor Funds are also subject to manager risk, which is the chance that poor security selection will cause a Factor Fund to underperform its respective benchmark or other funds with a similar investment objective, and sector risk, which is the chance that significant problems will arise a particular sector in which a factor fund invests or that returns from that sector are lagging behind returns from the stock market as a whole.
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