Vanguard is set to close its four-strong active factor ETF range in response to “insufficient” investor demand.
The four active ETFs, which offer exposure to value, momentum, low volatility and liquidity factors, have gathered $366.7m assets under management (AUM), as at 30 November.
The four ETFs, which are expected to shut on 23 February 2021, are the $216.5m Vanguard Global Value Factor UCITS ETF (VVAL), the $78.6m Vanguard Global Momentum Factor UCITS ETF (VMOM), the $13.8m Vanguard Global Liquidity Factor UCITS ETF (VLIQ) and the $57.8m Vanguard Global Minimum Volatility UCITS ETF (VMVL).
The range is managed by Vanguard’s Quantitative Equity Group which selects securities from the FTSE Developed All Cap and Russell 3000 index universes.
A spokesperson from Vanguard said in a statement: “Vanguard regularly reviews its product line-up to ensure it is meeting the needs and preferences of our investors. After careful evaluation and consideration, we have determined there is insufficient European investor interest in these funds.”
The suite, which was launched in December 2015, represented the US giant’s first move into the active ETF space in Europe.
The closures show the firm is refocusing efforts on its low-cost, core ETF range which totals €47.5bn AUM across 26 ETFs in Europe, as at the end of Q3.