FAST FIVE: Vanguard To Liquidate And Shutter A U.S. Listed ETF For The First Time In Its History

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Vanguard is shutting down and liquidating a US listed exchange traded fund for the first time in the firm's history, according to a new report by Bloomberg on Monday.

The investment giant is going to be shuttering the $39.7 million Vanguard US Liquidity Factor ETF (ticker VFLQ) in late November, according to the report.

It is liquidating the fund because it has “not gained scale since its 2018 debut.” A company press release reads: “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.”  “Vanguard continues to believe in the long-term investment case for factor investing.

Under the right circumstances, factor products may help investors achieve their financial goals,” the release continued.

“The firm's remaining US factor products have a combined $3.4 billion in assets and continue to deliver value to a wide range of advisor and retail clients by employing a low-cost, rules-based, all-capitalization approach that provides investors with targeted factor exposure.” The company said that shareholders are being notified and have the opportunity to sell their shares prior to the ETF delisting from Cboe BZX Exchange, Inc.

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