Vanguard active equity ETFs defer capital gains distributions for mutual fund holders

Investors in active equity ETFs avoid immediate tax liabilities on capital gains. The ETF structure defers capital gains until an investor sells out of the fund, whereas active mutual funds trigger capital gains distributions when investors leave. Vanguard launched three new active equity ETFs: the Vanguard Wellington US Value Active ETF (VUSV), the Vanguard Wellington US Growth Active ETF (VUSG), and the Vanguard Wellington Dividend Growth Active ETF (VDIG).