Vanguard has launched four actively-managed exchange-traded funds (ETFs) as part of a renewed push into the UK market.
The products, which mark the first time Vanguard has listed active ETFs on the London Stock Exchange, will each have ongoing charges of 0.22 per cent and offer exposure to particular market factors.
Three of the funds will focus on value, global momentum and global liquidity factors respectively, while the fourth, the Vanguard Global Minumum Volatility ETF, will invest in lower-volatility equities.
Active ETFs differ from traditional passive or smart beta equivalents by investing in a specific number of stocks rather than tracking an entire index.
The products will be run by Vanguard’s quantitative equity group, which has run strategies for the firm since 1991 and is responsible for $24bn in assets.
Axel Lomholt, head of product for Vanguard’s International business, said: “We believe these ETFs offer a compelling alternative to high-cost active strategies that target similar exposures.
“Vanguard has chosen to take an active approach to managing these funds by using quantitative models to select stocks and build a portfolio that targets the desired factor whereas other managers may track an index to implement a factor-based strategy.”
The launches will complement the 13 Vanguard ETFs that are currently available to UK investors.
