| NEW YORK, March 7
NEW YORK, March 7 Vanguard Group, the No. 1 U.S.
mutual fund company, on Friday took a step towards offering
exchange-traded fund versions of dozens of its well-known
actively managed mutual funds.
In a March 7 filing with the U.S. Securities and Exchange
commission, Vanguard said it was seeking permission to issue
active ETFs on existing funds.
These could include its Vanguard Explorer Fund,
Vanguard Wellington Fund, bond index and municipal
"No decisions have been made about which active funds,
whether existing or to be created, will offer an ETF share
class," Vanguard spokesman David Hoffman said.
He said Vanguard had been looking for some time at actively
managed ETFs that can offer investors and advisers access to
low-cost active management strategies.
Vanguard is the third-largest U.S. provider of ETFs that
track a benchmark index of securities such as stocks, bonds or
The Valley Forge, Pennsylvania-based company had 67 ETFs
with $345.5 billion in assets under management at the end of
Many active fund managers have been hesitant to launch ETF
versions of their funds because of concerns that disclosing
their portfolio holdings on a daily basis may reveal their
Several large asset managers, including BlackRock Inc
, State Street Corp, and Eaton Vance Corp
have asked the SEC to let them market actively managed ETFs that
would be permitted to report their portfolio holdings quarterly.
Hoffman noted that Vanguard would not offer shares of a fund
"unless the fund's adviser reasonably believes that the daily
disclosure of portfolio holdings would not have an adverse
effect on the portfolio strategy and its execution".