First Mutual Fund Liquidation Since 2020 By Vanguard

In the wake of the pandemic, Vanguard Group plans to shutter a US mutual fund for the first time in history. 

‍

Vanguard Alternative Strategies Fund (VASFX), which launched in 2015 but didn't receive broad acceptance among investors, will be liquidated in the second quarter of 2023. 

‍

As a spokesperson confirmed over email, Vanguard's Malvern, Pennsylvania-based firm is closing a mutual fund for the first time since winding up NJ Municipal Money Market Funds and PA Municipal Money Market Funds in 2020. After a brutal year for asset managers as the Federal Reserve tightened historically aggressively, investors drove billions of dollars out of mutual funds, making the move. 

‍

Regardless of the market conditions, funds are likely to expend more cash in the coming year, according to Trade Algo Intelligence analyst Eric Balchunas. 

‍

Also, Vanguard announced Tuesday that its $17.9 billion Vanguard LifeStrategy Moderate Growth Fund (VSMGX) will merge with its $1.2 billion Vanguard Managed Allocation Fund (VPGDX). A Vanguard U.S. Liquidity Factor ETF (VFLQ) was liquidated in November, becoming the firm's first US ETF to close in history.