Latest news with #DeMaso
Yahoo
24-06-2025
- Business
- Yahoo
Vanguard Changes Leadership on 44 Funds, Including World's Largest
Now you see them, now you don't. Vanguard removed numerous co-portfolio managers last week from more than 40 mutual funds and ETFs, following additions it made to many of the same fund teams earlier this year. It's business as usual for the company to change management on its extensive roster of products, but the scope in this case turned some heads. 'It is unusual for them to make so many changes, in such quick succession,' said Jeff DeMaso, editor of The Independent Vanguard Advisor. The changes, which shifted leadership roles, also affected the world's biggest mutual fund, the $1.8 trillion Vanguard Total Stock Market Index Fund. Some of the other notable funds seeing changes are the $1.4 trillion 500 Index Fund, the $105 billion Dividend Appreciation Index Fund, and the $63 billion Real Estate Index Fund. READ ALSO: Active Strategies Are Coming for Model Portfolios and Will AI Give the Free Markets ETF an Edge? Vanguard uses teams for portfolio management rather than emphasizing individuals, though some of the funds that lost staff now have one portfolio manager. 'Vanguard follows a team-based approach to portfolio management, and together, the team brings decades of experience to the management of our clients' assets,' a Vanguard spokesperson said. 'The portfolio managers who were added to funds in February 2025 bring extensive investment management experience to their roles, ensuring continuity and excellence in portfolio management.' There are seven products that went from having two portfolio managers to one, DeMaso noted: The $2 billion Vanguard Global Minimum Volatility and $178 million US Multifactor funds lost John Ameriks, with Scott Rodemer remaining as portfolio manager. The $1 billion US Momentum Factor, $598 million US Value Factor, $386 million US Quality Factor, $349 million US Multifactor, and $278 million US Minimum Volatility ETFs similarly lost Ameriks and are now overseen by Rodemer. Taste Test: It's worth pointing out that portfolio managers on index funds aren't picking stocks and instead are focused on tracking indexes and minimizing taxes, DeMaso said. Still, something he noted about the 81 co-manager positions assigned in February is that a mere four of them ate their own cooking, or were personally invested in the funds they were appointed to, at least as of the end of 2024. 'It makes you wonder where they invest their money,' he said at the time. This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Vanguard's 2 New Muni ETFs Have an Advantage Over Mutual Funds
Who wants some beta? Vanguard rounded out its municipal bond fund suite last week with a pair of passively managed tax-exempt funds: the Long-Term Tax-Exempt Bond and New York Tax-Exempt Bond ETFs. The strategies are new, not replicating existing mutual funds from the company's extensive product line. There are, however, two active mutual funds in the same category, the Admiral shares of which charge 9 basis points — the same fee charged by the passive ETFs. But there is still a draw for index-level returns, or beta. 'Some clients just want the beta,' along with the low cost and ease of operation with an ETF, said Perryne Desai, senior fixed income product manager for the two new funds. 'Now that bonds are actually yielding something and they are a safe harbor … there is no better time to be in fixed income. There's no better time to be in munis.' This story was originally published on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Vanguard has been building out its muni bond ETF line for two years, Jeff DeMaso, editor of The Independent Vanguard Adviser, said in a statement about the launch. With the additions, Vanguard has two dozen muni mutual funds and ETFs. The two new products 'won't turn heads but are practical additions to Vanguard's roster,' DeMaso said. And they don't necessarily offer a cost advantage over two existing active mutual funds, unless one takes into account the $50,000 minimum needed for Vanguard's Admiral shares — the Investor shares, which have a $3,000 minimum, charge 17 basis points for the Long-Term and 14 for the New York version. 'If you are willing to own a mutual fund (over an ETF), you can get Vanguard's active management for free,' DeMaso said. 'That's a good deal in my book.' Some of the details about the active funds: The Long-Term Tax-Exempt Fund, at $16.9 billion, has trailing returns of 0.26% over a year, 2.9% over three years, and 0.76% over five years, data from Morningstar show. The New York Long-Term Tax-Exempt Fund, at $5.1 billion, returned 0.28% over a year, 3.04% over three years, and 0.73% over five. Better for the Beta: The new ETFs are managed by Vanguard's fixed income group, whose track record in active management benefits the index team, Desai said, citing the example of the nearly 10-year-old Tax-Exempt Bond ETF, which has a beta of 0.97, according to Morningstar. 'Our tracking error is pretty darn tight, and in municipals, that's difficult to accomplish.' The post Vanguard's 2 New Muni ETFs Have an Advantage Over Mutual Funds appeared first on The Daily Upside.
