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Tuesday, February 27, 2024

Vanguard to Launch First New ETF in Extra Than 20 Months


(Bloomberg) — Asset-management big Vanguard Group Inc. unveiled plans Thursday to launch a brand new exchange-traded fund in a uncommon transfer for one of many trade’s largest gamers.

The Vanguard Brief-Time period Tax-Exempt Bond ETF would observe an index of municipal bonds with maturities between one month and 7 years, based on a submitting with the Securities and Trade Fee. The fund would cost a charge of seven foundation factors.

Whereas Vanguard is the second-largest issuer within the $6.7 trillion ETF market, the Malvern, Pennsylvania-based firm not often introduces new merchandise to its comparatively lean lineup. It controls about $1.9 trillion of property throughout 81 ETFs, whereas trade chief BlackRock Inc.’s $2.2 trillion haul is unfold out throughout 392 funds, based on information compiled by Bloomberg.

The deliberate muni-bond fund could be the primary new Vanguard ETF to launch because the debut of the $3 billion Vanguard Extremely Brief Bond ETF (ticker VUSB) in April 2021. Muni ETFs have had a banner 12 months in 2022, with buyers plowing a document $28.6 billion into the class, Bloomberg information present.

The potential new launch might come simply months after Vanguard’s first-ever closure of a US fund. The Vanguard US Liquidity Issue ETF (VFLQ) was liquidated in late November after struggling to lure buyers since debuting in 2018.

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