Low-volatility ETFs designed to limit risk have appealed to investors who want more defensive exposure to the stock market.
Now Vanguard has filed a registration statement with the SEC to introduce Vanguard Global Minimum Volatility Fund.
The fund would have two share classes – investor shares, and so-called Admiral shares that require an investment of $50,000. It is expected to be available in the fourth quarter.
However, Vanguard has not initially filed to introduce an ETF share class of the low-volatility fund.
A company spokeswoman told Barrons.com that Vanguard intends to request the SEC’s exemptive relief to offer an active ETF, but that process, assuming it’s approved, “is likely to take at least twelve months and possibly longer.”
Vanguard’s low-volatility fund would be actively managed.