Sept. 27, 2018
DUE DILIGENCE Alert : HIGH
COMPETITIVE Alert : 3
Event: Vanguard Charitable to add new ETF-based ESG strategies.
Briefing Points: i) The new strategies or “goals,” scheduled to become effective on October 1, allow charitable assets of investors to be directed into 3 ETF-based ESFG options, ii) Two of the new options correspond to Vanguard’s recently introduced ESG US Stock ETF and its ESG International ETF (see September 20), iii) The third offering, to be named the Vanguard ESG Global Stock ETF, is a blended portfolio with 70% in the Vanguard ESG US Stock ETF and 30% in its ESG International Stock ETF.
Affected Fund(s): Vanguard Charitable ESG US Stock Option, Vanguard Charitable ESG International Stock Option, and Vanguard Charitable ESG Global Stock Option
Asset Classes: US and Non-US Equities
Management Company: The Vanguard Group (Valley Forge, PA)
DD Concern: Investor Outreach/Educational
Marketing Considerations: Vanguard has been offering its successful $5.2 billion FTSE Social Index Fund since May 2000 which tracks the FTSE 4Good US Select Index. The addition of the ESG options to the charitable platform suggests more to come from the firm for Vanguard’s other institutional platforms, most notably its DC and 401k) businesses.