Vanguard, the king of low-cost, passive investing, has joined Cboe Global Markets' ETF Marketplace with the inclusion of six exchange-traded funds. According to Cboe Global Markets, the six ETFs that are now included in its marketplace are U.S. focused and include the Vanguard U.S. Liquidity Factor ETF (VFLQ), Vanguard U.S. Minimum Volatility ETF (VFMV), Vanguard U.S. Momentum Factor ETF (VFMO), Vanguard U.S. Multifactor ETF (VFMF), Vanguard U.S. Quality Factor ETF (VFQY) and Vanguard U.S. Value Factor ETF (VFVA).
"A significant measure of any market is the quality of participants it attracts, and Vanguard's arrival at the Cboe ETF Marketplace as an issuer is a major milestone for our team. We are looking forward to a long-lasting and fruitful relationship," said Laura Morrison, senior vice president, global head of exchange-traded products at Cboe, in a press release announcing Vanguard's participation. "As proud operators of some of the largest markets in the U.S., we are also particularly thrilled that it's this suite of products that have found their home with us." According to Cboe, as of the end of last year, there were 250 exchange-traded products from 47 issuers in its marketplace.
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The news of the inclusion in the Cboe Global Markets' ETF Marketplace comes at a time when Vanguard is getting accolades for its funds and is touting its rival-beating performance. Earlier this week, Money Magazine highlighted 42 of Vanguard's mutual funds and ETFs in its Annual Investment Guide. According to Vanguard, of the 42 investment products to be recommended by Money Magazine, 23 are mutual funds and 19 are ETFs. The fund company noted that its investment products have topped the rankings at Money for the past 18 years, but this marks the first time there was such a high concentration of Vanguard's funds and ETFs on the recommendation lists. Vanguard said that the highest number of mutual funds from a rival to land on the list is eight. On the ETF front, the closest rival got 13 of its funds named to Money's 50 recommended ETFs list.
Meanwhile, in its latest performance update earlier this month, Vanguard said that an eye-opening 86% of its funds exceeded their peer group averages over the past five years. That jumps to 94% on a ten-year basis as of the end of 2017. Vanguard did note that funds included in the assessment were those with one-, three-, five- and ten-year histories. When it comes to fund performance compared with rivals, Vanguard had impressive performance numbers, but it is bond and balanced funds that did the best in the five-year period, outperforming 88% of the funds invested in those asset classes. Meanwhile, Vanguard's stock funds did better than 84% of competing funds, while 100% of its money market funds bested their rivals.