Vanguard are closing the following ETFs on the 25th February 2021
- Global Liquidity Factor UCITS ETF (VLIQ)
- Global Minimum Volatility UCITS ETF (VMVL)
- Global Momentum Factor UCITS ETF (VMOM)
- Global Value Factor UCITS ETF (VVAL)
Detlef Glow, head of Lipper research for Europe, the Middle East and Africa at Refinitiv, said Vanguard appeared to be “streamlining” its overall product offering.
“Factor ETFs haven’t had the same success in Europe compared [with] their peers in the US [and so] this move seems not only to be driven by the profitability of the funds but also a strategic decision to move out of factor-driven strategies,” Mr Glow said.
Helen Pridham, a UK fund sales specialist, said that while the take-up of ETFs in the UK was growing, the products are mainly used in portfolios to gain core or short-term, low-cost passive exposure, whereas the market for factor-based ETFs is “limited”.