UPDATE: Vanguard has just announced the launch of three new active fundamental stock exchange-traded funds (ETFs) as the firm pivots to meet changing investor demands. This significant move, revealed today, marks Vanguard’s first venture into actively managed ETFs overseen by seasoned managers from Wellington Management, a key advisor in the Vanguard family.
The announcement comes amid a growing trend where investors are increasingly abandoning traditional mutual funds in favor of more cost-effective and tax-efficient ETFs. Over the past decade, this shift has intensified as asset managers face persistent outflows from actively managed mutual funds. Vanguard’s new ETFs aim to capitalize on this trend, offering clients lower fees and enhanced long-term performance potential.
The three funds launching include the Vanguard Wellington Dividend Growth Active ETF (VDIG), the Vanguard Wellington U.S. Growth Active ETF (VUSG), and the Vanguard Wellington U.S. Value Active ETF (VUSV). All three will be managed by Wellington’s experienced portfolio managers, who currently oversee Vanguard’s mutual funds.
Peter Fisher will manage VDIG, executing a strategy akin to his management of the well-regarded Vanguard Dividend Growth Fund. Meanwhile, Michael Masdea and Brian Barbetta will oversee VUSG, applying a similar approach to their management of the Vanguard Global Equity Fund but with a focus on U.S. stocks. David Palmer is set to lead VUSV, employing strategies similar to those he uses for the Vanguard Windsor Fund.
Each ETF is designed to provide Vanguard-like fees, with expected expense ratios placing VDIG and VUSG near the lowest decile in their respective categories. This competitive pricing is expected to attract investors looking for affordable, actively managed options.
Despite the promising launch, Vanguard’s move into actively managed ETFs comes at a time when the ETF market is increasingly competitive. While Vanguard has had success with rules-based stock ETFs and actively managed bond ETFs in the past, it had approximately $15 billion in actively managed ETFs as of July 2025— a modest portion of its total $10 trillion assets under management.
As the industry evolves and more managers make the jump to ETFs, the importance of distribution plans, investment processes, and manager expertise cannot be overstated. Analysts and investors alike will be watching closely to see how these new ETFs perform amid rising competition and declining fees across the board.
This launch not only positions Vanguard to better serve its clients but also reflects a major shift in the investment landscape. Investors seeking lower costs and tax efficiencies will be eager to see how these new offerings perform in the market.
Stay tuned for further updates as Vanguard navigates this new frontier in active ETF management.
