Vanguard plans its first actively managed ESG fund

Vanguard plans its first actively managed ESG fund
Managed by Wellington, the fund will include 40 companies and bow midyear.
MAR 07, 2019

Vanguard has created its first actively managed environmental, social and governance fund, which will be added to its current ESG offerings. The Vanguard Global ESG Select Stock Fund will be managed by Wellington Management Co. and is expected to be available for investment by midyear. The fund's benchmark is the FTSE All-World Index, and to outperform it, Vanguard said that "Wellington Management will identify and select approximately 40 companies that they believe demonstrate exemplary long-standing ESG practices and have strong business fundamentals and management teams with proven track records of good capital allocation decisions for shareholders." (Report:From upstream to mainstream: ESG at a tipping point) The fund is expected to be a long-term holder of those issues, resulting in low portfolio turnover, Vanguard said in a release. Wellington also will be responsible for governance activities for the fund, enabling fund managers to integrate proxy voting and company engagements into the fund's investment strategy, Vanguard said. Fund expense ratios are expected to be 0.45% for Admiral share investors and 0.55% for Investor share investors. The average asset-weighted expense ratio of actively managed funds labeled as socially conscious by Morningstar is 0.69%, Vanguard said. The fund's managers will be Mark D. Mandel, Wellington's vice chair and equity portfolio manager, and Yolanda C. Courtines, senior managing director and equity portfolio manager.

Latest News

Why financial honesty is key to harmonious relationships
Why financial honesty is key to harmonious relationships

Nearly half of single Americans think their net worth shapes their fate in dating, but the biggest financial green flags tell a different story.

Osaic hit with class action over cash sweep payments
Osaic hit with class action over cash sweep payments

The hybrid RIA is the latest firm to face allegations that it enriched itself at customers' expense by paying unfairly low interest rates in its cash sweep programs.

LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth
LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth

Installed after Dan Arnold's abrupt termination, the new leader at LPL Financial is highlighting the firm's refocusing on the individual advisor.

Pershing discussing move to control portion of broker-dealers’ cash.
Pershing discussing move to control portion of broker-dealers’ cash.

The clearing and custody giant is kicking the tires on new cash sweep plan with broker-dealer clients.

LPL, Raymond James boost advisor ranks anew
LPL, Raymond James boost advisor ranks anew

LPL Financial welcomes a $345 million investment and planning team from Ameriprise as RayJay's employee advisor arm adds a seasoned Well Fargo breakaway.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.