{"id":12629,"date":"2025-03-29T21:21:32","date_gmt":"2025-03-29T21:21:32","guid":{"rendered":"https:\/\/finderica.com\/?p=12629"},"modified":"2025-03-29T21:21:32","modified_gmt":"2025-03-29T21:21:32","slug":"vanguards-expired-patent-may-emerge-as-game-changer-for-fund-industry","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=12629","title":{"rendered":"Vanguard\u2019s expired patent may emerge as game changer 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” 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

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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":12630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[5228,5226,5224,143,5227,2121,5225,5223],"class_list":{"0":"post-12629","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-changer","9":"tag-emerge","10":"tag-expired","11":"tag-fund","12":"tag-game","13":"tag-industry","14":"tag-patent","15":"tag-vanguards"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/12629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12629"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/12629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/12630"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}