2023-03-21 08:26:37 ET
Vanguard, the world's second largest exchange traded fund issuer announced that it will be shutting down its operations in China. The Pennsylvania based asset manager told Chinese authorities of its intention to close its Shanghai office.
The news comes roughly two years after the firm stated that it would not follow through on building up a fund management unit in the area. The retraction from China leaves approximately 27 trillion yuan or $3.9T on the table for competitor investors to grab.
Vanguard also stated that it intends to withdraw itself from a robo-advisory joint venture with Jack Ma’s Ant Group.
Vanguard with its $7T assets under management looks to remain focused on markets away from China in hopes to bolster its assets in some of Wall Street’s most popular funds.
Vanguard’s largest ETFs by asset size:
- Vanguard Total Stock Market ETF ( NYSEARCA: VTI ) 274.93B.
- Vanguard S&P 500 ETF ( NYSEARCA: VOO ) $274.91B.
- Vanguard FTSE Developed Markets ETF ( NYSEARCA: VEA ) $104.20B.
- Vanguard Value ETF ( VTV ) $99.75B.
- Vanguard Total Bond Market ETF ( NASDAQ: BND ) $89.33B.
Year-to-date price action: VTI +3.4% , VOO +3.8% , VEA +2.4% , VTV - 3.9% , and BND +1.6% .
In related Vanguard news, the firm also recently launched the Vanguard Short-Term Tax-Exempt Bond ETF ( VTES ) earlier in the month.
For further details see:
Vanguard plans to exit out of the fund market in China