Vanguard is expanding its presence in the active ETF space with the launch of three new equity products managed in partnership with Wellington Management.
For financial advisors, this development underscores a shift in investor demand and product innovation that is reshaping the investment landscape. While Vanguard is best known for its low-cost index funds, the firm is steadily building a broader range of active strategies that may appeal to clients seeking diversification beyond passive approaches.
The new funds—Vanguard Wellington Dividend Growth Active ETF (VDIG), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington U.S. Value Active ETF (VUSV)—reflect a continuation of Vanguard’s long history of pairing with Wellington on active equity strategies. Wellington has served as a subadvisor on some of Vanguard’s most well-known mutual funds, including Vanguard Dividend Growth Fund (VDIGX) and the flagship Vanguard Wellington Fund (VWELX). This move effectively brings that partnership into the ETF format, giving advisors and investors a familiar investment philosophy with the structural benefits of ETFs.
Each of the new funds has a distinct investment mandate designed to capture different equity market exposures. VDIG will target large-cap companies with a history and capacity for dividend growth, using the S&P U.S. Dividend Growers Index as its benchmark. The strategy will seek to appeal to investors focused on income growth and capital appreciation, while charging a 0.40% expense ratio.
VUSG, with an expected expense ratio of 0.35%, will pursue companies with higher growth profiles. The portfolio will hold roughly 40 stocks, benchmarked against the Russell 1000 Growth Index, with an emphasis on concentrated, high-conviction ideas rather than broad diversification. For clients seeking targeted exposure to growth equities within a tax-efficient ETF wrapper, this may present a viable option.
VUSV, structured as a value-oriented fund, will hold approximately 80 names benchmarked to the Russell 1000 Value Index. With an expected expense ratio of 0.30%, it will position itself as a cost-effective way to gain value exposure, particularly in an environment where valuations remain a central focus for advisors rebalancing portfolios.
The head of Wellington’s equity boutiques, Kim Gailun, emphasized the significance of building on the decades-long collaboration between the two firms. She noted that combining Wellington’s active management expertise with Vanguard’s cost-sensitive investor base represents an opportunity to deliver competitive solutions at scale. Vanguard’s head of active equity product, Ryan Barksdale, added that the goal is to provide advisors with new “building blocks” for portfolio construction that marry active management with ETF efficiencies—transparency, liquidity, and tax advantages.
For advisors, the launch speaks to broader industry trends. While mutual funds remain important, flows have increasingly shifted to ETFs, largely due to cost efficiency and the ability to manage taxes more strategically. Actively managed ETFs, in particular, have gained traction. According to Morningstar data, more than 500 active ETFs were launched in 2024, and nearly 300 new products entered the market in just the first half of 2025. Investor demand is following suit: active ETFs gathered $183 billion in assets during that same period, signaling robust adoption.
Vanguard itself has been gradually expanding its active ETF lineup beyond equities. Its range now includes factor-based strategies, such as the Vanguard U.S. Momentum Factor ETF (VFMO), which tilts toward companies with recent price strength, as well as a suite of actively managed bond ETFs. With 13 active ETFs currently available and more in development, Vanguard is clearly positioning active ETFs as a core growth initiative.
For RIAs and wealth managers, the message is clear: Vanguard is betting that the next wave of growth in asset management will be fueled by active strategies delivered in ETF form. Advisors who traditionally turned to Vanguard primarily for passive index solutions now have more tools to consider when constructing client portfolios. The new products may be particularly useful for clients who want exposure to active management but prefer the liquidity, cost structure, and tax efficiency of ETFs over mutual funds.
The launch also highlights the increasing blurring of lines between active and passive management. Advisors are finding that many clients no longer view the choice as binary; instead, they seek a blend of passive building blocks and selective active strategies that can enhance returns, manage risks, or provide differentiated exposure. With these new offerings, Vanguard and Wellington are positioning themselves squarely in that middle ground.
As advisors evaluate these ETFs, key considerations will include the role of each fund in a broader allocation strategy, the potential for outperformance relative to their benchmarks, and the suitability of the strategies for different client objectives. For income-focused clients, VDIG may provide an appealing dividend growth story. For those seeking capital appreciation, VUSG offers concentrated growth exposure. And for investors drawn to value opportunities, VUSV brings disciplined active management at a low cost.
In a competitive market where investor preferences continue to shift, Vanguard’s latest move reinforces the importance of staying attuned to evolving product structures. Advisors who integrate these tools thoughtfully can provide clients with more flexibility, potentially enhance portfolio efficiency, and respond to growing interest in active management delivered in a modern ETF format.
