“The ETF looks at three characteristics when determining if a particular stock will be included in the fund: the number of shares trading on an average basis, how many dollars are trading on an average basis and how much price movement the stock is experiencing based on the money being traded,” according to Investopedia.
The ETF charges just 0.13% per year, or $13 on a $10,000 investment, a paltry fee relative to other actively managed products on the market.
Each of the single factor-specific active ETFs come with a 0.13% expense ratio, whereas the multifactor ETF has a 0.18% expense ratio. These are seen as an extension of Vanguard’s low-cost active lineup, which have outperformed their peer group averages over the past 5- and 10-year periods – 91% and 93%, respectively.
For more information on new fund products, visit our new ETFs category.