Vanguard announced that the $44.2 million Vanguard U.S. Liquidity Factor ETF (VFLQ) will be liquidated in late November. The decision was made as part of Vanguard’s ongoing review of its global product lineup.
The fund’s shareholders are being notified and have the opportunity to sell their shares before the ETF delisting from the Cboe BZX Exchange at the close of business on or about November 22. On the liquidation date, the remaining ETF assets will be sold and the proceeds distributed.
“We continue to add new products that have investment merit and meet investors’ preferences, change advisors and mandates to improve investor outcomes, and eliminate funds that lack a distinct role in investors’ portfolios,” said Dan Reyes, head of Vanguard’s portfolio review department, in a news release. “Despite the ETF’s capable advisor and sound approach to factor investing, it has not gained scale since its 2018 debut.”
The ETF originally began trading in February 2018.
Vanguard’s remaining U.S. factor products have a combined $3.4 billion in assets and employ a low-cost, rules-based, all-capitalization approach that provides investors with targeted factor exposure. The ETFs are actively managed by Vanguard’s Quantitative Equity Group, enabling daily portfolio assessment and potential rebalancing to mitigate factor drift. Taken together, this approach enables investors to tilt towards factors more efficiently.
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