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Vanguard to offer its first active ETF lineup in U.S.

Vanguard to offer its first active ETF lineup in U.S.
From Reuters - November 28, 2017

BOSTON (Reuters) - Vanguard Group Inc on Tuesday said it will offer six actively managed exchange traded funds aimed at giving investors exposure to specific factors like low volatility or liquidity, increasing competition in the nascent investment product area.

The new funds mark the first active ETFs that the Pennsylvania-based fund giant will sell in the United States. Vanguard also said in a statement that one of the funds, as well as a new mutual fund, will use more than one factor in selecting stocks.

Vanguard is best known for its passive products, whose low costs have helped drive its total assets to $4.8 trillion, the most of any mutual fund firm.

Unlike traditional ETFs, which often track a particular index, holdings in actively managed ETFs can deviate from their benchmarks based on managers judgments.

Most active ETF assets are currently in fixed-income products such as Pimco Active Bond ETF and the SPDR DoubleLine Total Return Tactical ETF, said Todd Rosenbluth, a director at fund researcher CFRA.

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