New launches of exchange-traded funds at
“The investment we made over the last several years in the business is beginning to pay off. We are close to a 100% growth over last year in net flows,” he said. At this point, Vanguard, whose ETF market share is only 6% to 7%, is taking in 18% to 20% of all ETF inflows, Rampulla said.
Daniel Wiener, editor of the Independent Adviser for Vanguard Investors, said he expects ETF sales to become increasingly important for Vanguard. “There’s no question that [ETFs] is the big growth area for them,” Wiener said.
Vanguard launched six new ETFs this year, all taking in significant amounts of month. An ETF based on the FTSE All-World (ex-U.S.) index reaped $1.1 billion, four bond ETFs attracted a combined $1.3 billion and one based on an MSCI index took in $500 million.
Although Vanguard is planning to launch a bond ETF, unlike competitors, it is exercising restraint in the products it is launching, Rampulla said. “There will be a few more products, but you won’t see dozens and dozens of products. We are getting pretty close of a very solid line-up,” he said.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
