ETF Vanguard Global Multi-Factor Active ETF (Managed Fund) (VGMF)

Discussion in 'Shares & Funds' started by Zenith Chaos, 5th Jul, 2019.

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  1. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Can't remember reading about Vanguard's new global multi-factor ETF / fund.
    • Management fee: 0.33% p.a
    • Indirect costs: 0.01% p.a
    • Benchmark: FTSE Developed All-Cap in Australian dollars Index
    • Asset Class: International Shares
    • Management style: Active
    • Domicile: Australia
    • Distribution frequency: Quarterly
    • Fund Taxation Election Status: AMIT
    • Fund inception: 08 Apr 2019
    • ETF AUM: $13.48 Million as at 31 May 2019
    FUND CODES
    • ISIN: AU0000041386
    • ASX: VGMF
    Factors:
    • Momentum- stocks that exhibit strong recent performance
    • Quality- stocks that exhibit strong profitability and healthy balance sheets
    • Value- stocks with low prices relative to fundamental measures of value.
    Investment Products

    Adding factors to Vanguard's global value fund VVLU discussed here: Vanguard Global Value Equity Active ETF (VVLU) [ETF]

    A few thoughts (not attacks, only for the sake of philosophical discussion)
    • If passive cap weighted indexing is indeed optmal, does Vanguard contradict its mantra by offering active funds?
    • Is it worth adding a sub-optimal portfolio allocation for a chance of performance?
    • Do these factors contradict each other / cancel each other out? E.g all the true value stocks have no momentum, so they would be excluded by the algorithm. It's like voting for a centrist party that stands for nothing.
     
    Zenith Chaos, 5th Jul, 2019
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  2. The Falcon

    The Falcon Well-Known Member

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    Jack Bogle's mantra isn't Vanguard's. Vanguard is a funds management company delivering what the market wants.
     
    The Falcon, 5th Jul, 2019
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  3. SatayKing

    SatayKing Well-Known Member

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    What the market wants or what the provider thinks the market wants or a teaser to test the waters? Rhetorical questions.

    If the majority of active managers cannot there is no reason to assume Vanguard active will either.

    The last dot point is an interesting one. In a passive index you have a couple of companies doing an absolute blitzer are they automatically to be included in the active. Swing time to appropriate dance music.
     
    SatayKing, 5th Jul, 2019
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  4. Nodrog

    Nodrog Well-Known Member

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    Ain’t that the truth.
     
    Nodrog, 5th Jul, 2019
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  5. sfdoddsy

    sfdoddsy Well-Known Member

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    Don't some of those factors cancel each other out?
     
    sfdoddsy, 5th Jul, 2019
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  6. The Falcon

    The Falcon Well-Known Member

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    Yep. Just hoisting the flag to see if anyone salutes it. Every chance it’s gooorrne in 3 years.
     
    The Falcon, 5th Jul, 2019
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