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Vanguard Wellington U.S. Growth Active ETF and two other ETFs in registration
Nothing is mentioned in the filing about tax-free conversion from active OEFs to active ETFs. These seem self-standing active ETFs, not the ETF classes of active OEFs.
I am not aware of Vanguard going beyond the ETF classes of its indexed OEFs.
@yogibearbull, thank you. In retrospect, I gather Vanguard would not make the ETFs classes of the active OEFs, because they would run into large redemptions in the OEFs.
@Mona, that won't be a reason, although there may be others.
It's because a fund with several classes is treated as a single pool. If it has an etf class, it will have the same CG distribution as the OEF classes. This has been pointed out as a problem if VG funds (ever) have huge outflows. If the AUM keeps increasing, then there is no issue.
Comments
https://www.morningstar.com/funds/vanguard-offer-etf-versions-popular-active-stock-funds
Vanguard Wellington Dividend Growth Active ETF
https://www.sec.gov/Archives/edgar/data/105544/000168386325006748/f42708d1.htm
Vanguard Wellington U.S. Growth Active ETF
https://www.sec.gov/Archives/edgar/data/105544/000168386325006747/f42662d1.htm
Vanguard Wellington U.S. Value Active ETF
https://www.sec.gov/Archives/edgar/data/105544/000168386325006749/f42707d1.htm
I am not aware of Vanguard going beyond the ETF classes of its indexed OEFs.
It's because a fund with several classes is treated as a single pool. If it has an etf class, it will have the same CG distribution as the OEF classes. This has been pointed out as a problem if VG funds (ever) have huge outflows. If the AUM keeps increasing, then there is no issue.