Investment Product & Service Launches – 11/2/23

Vanguard to Expand Municipal Bond ETF Lineup

Vanguard announced plans to launch two index municipal bond exchange-traded funds, Vanguard Intermediate-Term Tax-Exempt Bond ETF and Vanguard California Tax-Exempt Bond ETF. The ETFs will be managed by Vanguard’s Fixed Income Group, which has overseen municipal bond portfolios for more than 40 years.

“These new strategies will offer tax-sensitive investors low-cost exposure to important segments of the municipal bond market through the ETF product structure,” Dan Reyes, global head of Vanguard’s portfolio review department, said in a statement.

The Vanguard Intermediate-Term Tax-Exempt Bond ETF is for investors with tax sensitivity, an intermediate-term time horizon and a preference for passive management. The ETF is designed to provide federally tax-free yield in an efficient and low-cost ETF structure and to complement Vanguard’s existing short-term and broad market national tax-exempt ETFs.

Vanguard California Tax-Exempt Bond ETF is also designed for tax-sensitive investors with an intermediate-term time horizon and a preference for passive management but will be specifically designed for residents of California. The ETF is designed to provide yield that is tax-exempt at both the federal and state levels for California residents.

Planswell Expands Free Offering to Retirees

Planswell, a financial services company, has expanded its capabilities to households already living in retirement.

To date, the software has been used to model and optimize wealth accumulation across tax-efficient investment accounts, insurance and debt for families approaching retirement. Now, people who are already retired can use Planswell to learn how to optimize their retirement plan. 

“Our platform has always modeled asset de-accumulation for our users,” Eric Arnold, Planswell’s CEO, said in a statement. “But our calculations were based on income and savings of pre-retirees. Now, we can optimize everything for people who are already in de-accumulation mode. It’s a game changer for a huge part of the population.”

Checking the box “I’m already retired” at Planswell.com will take users through an experience they can complete on their phone in about three minutes, according to Planswell. Retirees will learn how they can implement tax-efficient planning strategies.

John Hancock Investment Management Expands ETF Lineup

John Hancock Investment Management, a company of Manulife Investment Management, will launch two exchange-traded funds to expand its ETF lineup and bring additional income and capital appreciation opportunities to investors.

John Hancock Dynamic Municipal Bond ETF is the firm’s first municipal bond ETF, which seeks a high level of interest income exempt from federal income tax. John Hancock Fundamental All Cap Core ETF is the firm’s first active semi-transparent ETF and seeks long-term capital appreciation.

“Regardless of the broader macro environment or prevailing market conditions, strategies that aim to provide income and capital appreciation opportunities are appealing to investors,” Steve Deroian, co-head of retail product at John Hancock Investment Management, said in a statement. “Our new ETFs, managed by our affiliated subadvisor, Manulife Investment Management, reflect our ability to deliver solutions across the allocation spectrum for our clients.”

The firm’s ETF suite totals 12 funds with more than $5 billion in assets under management, as of September 30, including preferred income, mortgage-back securities, corporate bond, municipal bond, U.S. and international equity portfolios.

Vanguard International Dividend Growth Fund Now Available for Investment

Vanguard announced that its Vanguard International Dividend Growth Fund is now available for investment, beginning with a two-week subscription period.

The fund is actively managed by Wellington Management Co. and seeks to compound wealth over time by investing in companies that can grow their dividends over the long term. The subscription period will conclude at the end of the business day on November 14.

“We believe the International Dividend Growth Fund is a compelling option for investors seeking increased international equity exposure in their portfolios,” Dan Reyes, head of Vanguard’s portfolio review department, said in a statement. “The fund also complements our existing dividend growth franchise, and we’re confident in the proven investment philosophy and process employed by Wellington Management’s Dividend Growth team.”

The new fund features companies with strong balance sheets and high, sustainable free cash flows, which enable them to grow their dividends over time while continuing to reinvest in future growth, according to Vanguard. The fund will have a single share class with an estimated expense ratio of 0.54%, compared with the industry average of 1.02%. The fund’s minimum initial investment is $3,000.