VALLEY FORGE, Pa., March 23, 2021 /PRNewswire/ -- Vanguard
today announced it is broadening the accessibility and utility of
three ETFs in its Russell Index series by employing forward share
splits. Vanguard Russell 1000 Value ETF (VONV) and Vanguard Russell
2000 ETF (VTWO) have declared a two-for-one share split, and
Vanguard Russell 1000 Growth ETF (VONG) has declared a four-for-one
share split.
"Vanguard carefully monitors fund health to ensure that funds
are performing as expected, being appropriately utilized, and
aligning with investor-desired outcomes," said Kaitlyn Caughlin, head of Vanguard Portfolio
Review Department. "Vanguard is employing ETF share splits to keep
share prices within efficient and accessible trading ranges, which
benefits investors with ETF-centric portfolios by reducing
uninvested cash in client accounts."
Vanguard periodically and diligently assesses its ETF lineup to
determine when and where share splits would most benefit investor
outcomes. A number of factors are considered, including ETF market
price, bid-ask spread, and trading volume. These three ETFs meet
Vanguard's rigorous standards for executing a share split at this
time.
Financial advisors are increasingly utilizing Vanguard ETFs
through Vanguard-managed or third-party models to construct low
cost, broadly diversified portfolios on behalf of their clients.
Lower share prices enhance the functionality and utility of these
ETFs within those models, particularly when rebalancing client
portfolios.
The share splits for Vanguard Russell 1000 Value ETF and
Vanguard Russell 2000 ETF will result in each shareholder receiving
one additional ETF share for every share held. Similarly,
shareholders of Vanguard Russell 1000 Growth ETF will receive three
additional shares for every one share held. All investors who own
shares as of the close of trading on Monday,
April 19, 2021, will have their shares included in the share
split. The shares are expected to start trading at the new
split-adjusted price beginning April 20,
2021. Importantly, ETF share splits have no impact on the
market value of an investor's holdings of the ETF and do not
trigger any tax consequences.
Vanguard's ETF leadership
With $1.7 trillion in ETF assets
under management globally and a lineup of 81 U.S.-domiciled ETFs,
Vanguard is one of the industry's leading ETF issuers. Vanguard is
committed to providing choice and flexibility, enabling advisors
and investors to build low-cost, broadly diversified portfolios
that meet their unique investment needs. Vanguard pioneered the
indexing strategy for individual investors and was an early
proponent of ETFs to broaden the availability of passive strategies
to more investors. The firm recently announced plans to introduce
its first actively managed fixed income ETF, Vanguard Ultra-Short
Bond ETF, in the second quarter of 2021.
About Vanguard
Vanguard is one of the world's largest
investment management companies. As of February 28, 2021, Vanguard managed $7.3 trillion in global assets. The firm,
headquartered in Valley Forge,
Pennsylvania, offers 437 funds to its more than 30 million
investors worldwide. For more information, visit vanguard.com.
All figures as of February 28,
2020 unless stated otherwise.
For more information about Vanguard funds, visit vanguard.com
to obtain a prospectus or, if available, a summary prospectus.
Investment objectives, risks, charges, expenses, and other
important information about a fund are contained in the prospectus;
read and consider it carefully before investing. Copies of the
prospectus can be obtained from Vanguard
Vanguard ETF Shares are not redeemable with the issuing fund
other than in very large aggregations worth millions of dollars.
Instead, investors must buy and sell Vanguard ETF Shares in the
secondary market and hold those shares in a brokerage account. In
doing so, the investor may incur brokerage commissions and may pay
more than net asset value when buying and receive less than net
asset value when selling.
All investing is subject to risk, including the possible loss of
the money you invest. Investments in bonds are subject to interest
rate, credit, and inflation risk. Diversification does not
ensure a profit or protect against a loss.
Vanguard Marketing Corporation, Distributor.
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