06.11.25

Vanguard Seeks SEC Approval To Expand Tax-Busting Fund Design

by: Emily Graffeo

Vanguard is seeking approval from the Securities and Exchange Commission (SEC) to expand its dual-share class fund structure to actively managed strategies, which could give mutual fund holders some of the tax efficiency of exchange-traded funds (ETFs). The SEC rejected Vanguard's prior effort to apply the fund blueprint to actively managed strategies in 2015, but the industry anticipates approval under the new administration. If approved, the dual-share model could inject fresh momentum into actively managed ETFs, which are taking a share of flows from passive funds.

Read the full article on Bloomberg