On June 11, 2025, Vanguard filed an application with the U.S. Securities and Exchange Commission for a multi-class active ETF structure. The filing requests approval of a structure where Vanguard can operate one class of shares as an ETF, while having one or more classes that are not exchange-traded. Vanguard already has approval to launch ETFs as a share class of indexed mutual funds, a structure for which it had a patent that expired in 2023. Since the patent’s expiration, over 60 asset managers have filed with the SEC for this dual ETF-mutual fund share class structure for both indexed and active strategies. It appears likely that the SEC will approve these applications sometime this year.
Vanguard’s active share class filing is significant because it signals an intent to grow in the active ETF category, which has very different competitive dynamics from the indexed ETF…
