Vanguard to launch more ETFs and active funds in UK

It is understood that Vanguard hopes to add more actively managed funds, popular in its home territory of the US, to its UK offering in a bid to challenge established players on pricing.

The mutual fund group, which specialises in passive vehicles, burst into the UK market in 2009. Thus far, it has specialised in ETFs and index tracker funds.

Vanguard recently closed its actively managed $1.8bn (£1.1bn) US Opportunities and $160m (£96m) US Discoveries funds to new investors after they grew by more than $1bn last year. It is also considering an expansion of its ETF range in the UK, targeting 20 to 30 products within the next two years. The fund house currently offers nine ETFs.

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Adviser view

Tom Diaper, IFA at London-based Plutus Wealth Management, said: “Active managers can outperform in certain markets, as boots on the ground can mean better stock-picking, but we track established indices where active managers find it hard to beat the benchmark.”