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Vanguard Takes a Bigger Swing at Active ETFs With Three New Equity Funds

MarketDash Editorial Team
18 days ago
Vanguard just rolled out three Wellington-managed active equity ETFs targeting growth, value, and dividend strategies. The move marks another step in the index giant's push beyond its passive roots, as active ETFs continue drawing massive investor interest across the industry.

Vanguard, the company that basically invented the idea of boring index funds, keeps getting more interesting. The firm just launched three new actively managed equity ETFs, all run by Wellington Management, pushing further into territory that would have seemed unthinkable during the John Bogle era.

The new arrivals include the Vanguard Wellington U.S. Value Active ETF (VUSV), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington Dividend Growth Active ETF (VDIG). With these additions, Vanguard now has eight active equity ETFs in its lineup, a clear signal that the passive investing pioneer is embracing a more diverse approach.

The timing makes sense. Investors have been flooding into actively managed ETFs lately, driving what's turned into a record year for new product launches across the entire industry. Vanguard is simply meeting demand where it exists.

But Vanguard isn't just chasing the equity side of this trend. Over recent months, the firm has also rolled out several actively managed bond ETFs, including the Short Duration Bond ETF (VSDB), Multi-Sector Income Bond ETF (VGMS), Government Securities Active ETF (VGVT), and High-Yield Active ETF (VGHY). That brings Vanguard's active fixed-income roster to nine funds, showing this isn't a one-off experiment but a sustained commitment to active management.

Wellington's Playbook Goes ETF

All three new equity ETFs are managed by Wellington Management, which has deep roots with Vanguard. Wellington hired a young John Bogle back in 1951, long before he founded Vanguard and revolutionized investing. Now, decades later, the partnership continues with these new funds built on Wellington's established mutual fund strategies.

Dan Reyes, Vanguard's global head of investment product, emphasized that combining Wellington's research-driven approach with the transparency and tax efficiency inherent in ETF structures should create a powerful tool for investors building long-term portfolios.

What Each Fund Actually Does

VUSV follows the same playbook Wellington uses for its slice of the Windsor Fund, hunting for 60 to 100 undervalued U.S. stocks. The benchmark is the Russell 1000 Value Index, and it charges a 0.30% expense ratio.

VUSG takes a more concentrated approach, investing in just 30 to 60 high-growth U.S. companies. This mirrors Wellington's strategy in the Vanguard Global Equity Fund. It's benchmarked against the Russell 1000 Growth Index and comes with a 0.35% fee.

VDIG shares the same management team as the Dividend Growth Fund and focuses on 20 to 40 high-quality companies with rock-solid balance sheets and consistent dividend growth records. Its benchmark is the S&P U.S. Dividend Growers Index, and it carries a 0.40% expense ratio.

According to Vanguard, these three funds are designed to work together as complementary building blocks within a diversified equity portfolio. The idea is straightforward: whether you lean toward value, growth, or income, there's now a Wellington-managed active ETF that fits your strategy.

Back to News

Vanguard Takes a Bigger Swing at Active ETFs With Three New Equity Funds

MarketDash Editorial Team
18 days ago
Vanguard just rolled out three Wellington-managed active equity ETFs targeting growth, value, and dividend strategies. The move marks another step in the index giant's push beyond its passive roots, as active ETFs continue drawing massive investor interest across the industry.

Vanguard, the company that basically invented the idea of boring index funds, keeps getting more interesting. The firm just launched three new actively managed equity ETFs, all run by Wellington Management, pushing further into territory that would have seemed unthinkable during the John Bogle era.

The new arrivals include the Vanguard Wellington U.S. Value Active ETF (VUSV), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington Dividend Growth Active ETF (VDIG). With these additions, Vanguard now has eight active equity ETFs in its lineup, a clear signal that the passive investing pioneer is embracing a more diverse approach.

The timing makes sense. Investors have been flooding into actively managed ETFs lately, driving what's turned into a record year for new product launches across the entire industry. Vanguard is simply meeting demand where it exists.

But Vanguard isn't just chasing the equity side of this trend. Over recent months, the firm has also rolled out several actively managed bond ETFs, including the Short Duration Bond ETF (VSDB), Multi-Sector Income Bond ETF (VGMS), Government Securities Active ETF (VGVT), and High-Yield Active ETF (VGHY). That brings Vanguard's active fixed-income roster to nine funds, showing this isn't a one-off experiment but a sustained commitment to active management.

Wellington's Playbook Goes ETF

All three new equity ETFs are managed by Wellington Management, which has deep roots with Vanguard. Wellington hired a young John Bogle back in 1951, long before he founded Vanguard and revolutionized investing. Now, decades later, the partnership continues with these new funds built on Wellington's established mutual fund strategies.

Dan Reyes, Vanguard's global head of investment product, emphasized that combining Wellington's research-driven approach with the transparency and tax efficiency inherent in ETF structures should create a powerful tool for investors building long-term portfolios.

What Each Fund Actually Does

VUSV follows the same playbook Wellington uses for its slice of the Windsor Fund, hunting for 60 to 100 undervalued U.S. stocks. The benchmark is the Russell 1000 Value Index, and it charges a 0.30% expense ratio.

VUSG takes a more concentrated approach, investing in just 30 to 60 high-growth U.S. companies. This mirrors Wellington's strategy in the Vanguard Global Equity Fund. It's benchmarked against the Russell 1000 Growth Index and comes with a 0.35% fee.

VDIG shares the same management team as the Dividend Growth Fund and focuses on 20 to 40 high-quality companies with rock-solid balance sheets and consistent dividend growth records. Its benchmark is the S&P U.S. Dividend Growers Index, and it carries a 0.40% expense ratio.

According to Vanguard, these three funds are designed to work together as complementary building blocks within a diversified equity portfolio. The idea is straightforward: whether you lean toward value, growth, or income, there's now a Wellington-managed active ETF that fits your strategy.

    Vanguard Takes a Bigger Swing at Active ETFs With Three New Equity Funds - MarketDash News