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Vanguard to liquidate US Liquidity Factor ETF

VALLEY FORGE, Pa., September 26, 2022 /PRNewswire/ — Vanguard today announced that the $44.2 million Vanguard US Liquidity Factor ETF will be liquidated at the end of November. The decision was made as part of Vanguard’s comprehensive and ongoing review of its global product lineup to ensure that each fund and ETF meets changing customer needs.

“We continue to add new products that have investment appeal and respond to investor preferences, change advisors and mandates to improve investor outcomes, and eliminate funds that don’t have a distinct role in portfolios. investors,” said Dan Reyes, head of Vanguard’s portfolio review department. “Despite the ETF’s capable advisor and strong approach to factor investing, it hasn’t gained momentum since its debut in 2018.”

Vanguard continues to believe in the long-term investment case for factor investing. Under the right circumstances, factor products can help investors achieve their financial goals. The company remains US factor products have a handset $3.4 billion assets and continue to deliver value to a broad range of advisors and retail clients by employing a low-cost, rules-based, all-cap approach that provides investors with targeted factor exposure. ETFs are actively managed by Vanguard Quantitative Equity Group, allowing for daily portfolio valuation and potential rebalancing to mitigate factor drift. Overall, this approach allows investors to focus on factors more effectively.

Shareholders are notified and given the opportunity to sell their shares prior to ETF delisting from Cboe BZX Exchange, Inc. at the close of business on or about November 22, 2022. On the liquidation date, the remaining assets of the ETF will be sold and the proceeds distributed.

Vanguard Quantitative Equity Group’s team of experienced strategists, analysts and portfolio managers oversees $46.6 billion across 30 mandates with the aim of generating alpha through sophisticated investment strategies. The team’s collaborative, integrated approach and profitable, risk-controlled investment process ensures that all team members work together towards the common goal of delivering excess returns to clients.

About Vanguard
Founded in 1975, Vanguard is one of the world’s leading investment management companies. The firm offers investment, advisory and retirement services to individual investors, institutions and finance professionals. Vanguard operates under a unique investor-owned structure where shareholders of Vanguard funds own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple goal: to stand up for all investors, treat them fairly, and give them the best chance for investment success. For more information, visit vanguard.com.

All digits at August 31, 2022unless otherwise stated.

For more information about Vanguard funds, go to vanguard.com for a prospectus or, where available, a simplified prospectus. The investment objectives, risks, charges, expenses and other important information about a fund are contained in the prospectus; read it and think about it carefully before investing.

Vanguard ETF shares are not redeemable from the Issuing Fund except in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Any investment is subject to risk, including the possible loss of the money you invest.

Factor Funds are subject to investment style risk, which is the possibility that the returns of the types of stocks in which a Factor Fund invests will be lower than the returns of US equity markets. Factor Funds are also subject to manager risk, which is the possibility that poor stock selection will cause a factor fund to underperform its relevant benchmark or other funds with an investment objective. similar investment, and sector risk, which is the possibility that significant problems will affect a particular sector in which a Factor Fund invests, or that the returns of that sector will follow the returns of the overall stock market.

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