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Post by roi2020 on Feb 18, 2023 7:29:09 GMT
Many of Vanguard's ETFs are share classes of existing mutual funds. This structure is unique to Vanguard since they own a patent (expires May 2023) for it. One asset-management firm has already expressed interest in adding an ETF share class to several of its mutual funds. Will other firms follow suit?
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Post by yogibearbull on Feb 18, 2023 13:26:37 GMT
Vanguard made the mistake of not licensing its "ETF class of funds" patents to anyone. By now, this idea is quite stale. Vanguard itself has launched some self-standing ETFs in the US, and in Europe, most of its ETFs are self-standing. The Australian firm Perpetual US/PGIA (not to be confused with the US PGIM) that has filed is for ACTIVE ETF classes of ACTIVE funds. Unclear if the Vanguard patent was limited to PASSIVE funds only, or whether it never bothered to do so with ACTIVE funds. Last few years have shown limitations of this idea - when there are heavy mutual fund outflows, then the related ETFs have the same CG distributions as all classes.
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