{"id":7810,"date":"2025-03-29T22:00:43","date_gmt":"2025-03-29T22:00:43","guid":{"rendered":"https:\/\/demo5.dedicatedhost247.com\/zexo\/vanguards-expired-patent-may-emerge-as-game-changer-for-fund-industry\/"},"modified":"2025-03-29T22:00:43","modified_gmt":"2025-03-29T22:00:43","slug":"vanguards-expired-patent-may-emerge-as-game-changer-for-fund-industry","status":"publish","type":"post","link":"https:\/\/demo5.dedicatedhost247.com\/zexo\/vanguards-expired-patent-may-emerge-as-game-changer-for-fund-industry\/","title":{"rendered":"Vanguard\u2019s expired patent may emerge as \u2018game changer\u2019 for fund industry"},"content":{"rendered":"


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An expired patent \u2014 previously held by Vanguard \u2014 may spark a\u00a0shake-up\u00a0in the exchange-traded fund industry.<\/p>\n

Wall Street saw the patent as critical to Vanguard’s success because it saved an enormous amount of money in taxes. Now, the firm’s ETF competitors could get a chance to use it, too.<\/p>\n

“It’s really a game changer,” BNY Mellon’s global head of ETFs’ Ben Slavin told CNBC’s “ETF Edge”<\/a> this week.<\/p>\n

Vanguard’s patent expired in 2023. How it works: Investors can access the same portfolio of stocks through two different formats: a mutual fund and an ETF. The portfolio has the same managers and the same holdings. “ETF Edge” host Bob Pisani notes the advantage is that it reduces taxable events in a (shared) portfolio.<\/p>\n

Ben Johnson of Morningstar contends the structure could help millions of investors reduce tax burdens. His research firm describes it as a way for ETFs to exist as a separate share class within a mutual fund.<\/p>\n

“ETF share classes appended to the mutual fund would help improve the tax efficiency of the fund to the benefit of everybody,” said Johnson, the firm’s head of client solutions.<\/p>\n

It will ultimately come down to approval by the Securities and Exchange Commission.<\/p>\n

“My thesis has been that it’s a matter of when, and not if,” said Johnson, who added the ETF industry thinks it could happen as soon as this summer.<\/p>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

An expired patent \u2014 previously held by Vanguard \u2014 may spark a\u00a0shake-up\u00a0in the exchange-traded fund industry. Wall Street saw the patent as critical to Vanguard’s success because it saved an enormous amount of money in taxes. Now, the firm’s ETF competitors could get a chance to use it, too. “It’s really a game changer,” BNY […]<\/p>\n","protected":false},"author":1,"featured_media":7811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[49],"tags":[199,11782,5983,10582,11780,2027,2193,2626,11774,186,244,183,11776,10046,11775,6947,11778,11781,708,10479,8604,323,185,11777,11779,187],"jetpack_featured_media_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/106318432-1577984536989ap_100624035141r.jpg?v=1668791909&w=1920&h=1080","_links":{"self":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts\/7810"}],"collection":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/comments?post=7810"}],"version-history":[{"count":0,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts\/7810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/media\/7811"}],"wp:attachment":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/media?parent=7810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/categories?post=7810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/tags?post=7810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}