Despite Huge Outflows, This Vanguard ETF is Still a Big Winner

Today we cover substantial redemption pressure that has been present in an ETF that is not necessarily a mainstream name, but still has considerable assets under management at times and is issued by one of the largest sponsors.

The Vanguard Extended Market ETF (NYSE:VXF) (Expense Ratio 0.10%, $3.1 billion in AUM) has seen a considerable $994 million leave the fund in the trailing one-month period. Looking at the chart below, you can see swells in volume in the fund on several occasions when sellers have been lurking.

VXF-2016-09-12

VXF falls within the Mid-Cap equity category and more specifically the “Mid-Cap Blend” space, while tracking an index known as the “S&P Completion Index.” VXF actually leads all U.S. listed ETPs in recent days in terms of outflows with a substantial >$1.1 billion leaving the fund thanks to redemption activity.

VXF is compared to the Wilshire 4500 Index in terms of a comparable benchmark, and we see that the fund currently owns three thousand two hundred fifty-five individual stocks presently, giving it clearly broad diversification.

The top weightings currently appear as follows: 1) CHTR (1.24%), in the news TSLA ranking at number two (0.64%), 3) LBTYK (0.57%), 4) LNKD (0.56%), and 5) LVS (0.45%).

VXF shares rose $0.34 (+0.38%) to $89.74 in Monday afternoon trading. Year-to-date, VXF has gained 7.11%.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch
paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.

Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.