Vanguard Europe MD: There is room for passive and active fees to go lower

Follows launch of 'active' ETF range

The launch of Vanguard's 'active' ETF range in the UK at the end of last year was another key milestone for the global funds giant, which had spent the past five years rapidly gaining market share in the passive and exchange-traded funds (ETF) space in the UK.

Unlike other providers that track an index to implement a factor-based strategy, the group appoints managers to use quantitative models to select stocks and build a portfolio targeting one of four factors: value, momentum, liquidity and minimum volatility. The new range is its first attempt to break into the active investing space in the UK. John James (pictured), managing director for Vanguard Europe, said: "Our active products are absolutely not smart beta investing. There are three types of active investing: traditional stock picking, quantitative analysis, where models are placed ...