Vanguard Group, a US-based provider of exchange-traded funds, is seeking approval from the US Securities and Exchange Commission (SEC) to launch actively-managed ETFs.
The approval will enable Vanguard to offer ETF share classes for its existing actively-managed mutual funds, including its US$82 billion Wellington Fund, Vanguard Explorer Fund, bond index as well as its municipal bond funds.
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Vanguard spokesman David Hoffman said: "No decisions have been made about which active funds, whether existing or to be created, will offer an ETF share class."
Joel Dickson, a senior ETF strategist at Vanguard, said: "The firm has no immediate plans to offer active ETFs should it receive approval."
Dickson added that the firm will have to file few more applications for specific funds to sell ETF shares.
In addition, Vanguard had been seeking for actively managed ETFs that can offer investors and advisers access to low-cost active management strategies.
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By GlobalDataHoffman added that Vanguard will not offer shares of a fund unless the fund’s adviser believes that the daily disclosure of portfolio holdings would not have an adverse effect on the portfolio strategy and its execution.
