That's exactly the first thing that popped in my mind when I learned that AAEQ was in the pipeline. I could imagine they get into a pattern where they offer a new 351 tranche every 6 months to new investors, spool up the fund, then fold it back into the existing granddaddy AAUS at a 1:1 NAV. It would allow them to keep the efficiencies of scale in one or two funds and use the influx of custom creation assets from each 351 tranche to help rebalance the core fund to their target holdings.I'm strongly considering AAEQ, especially if they have a plan for merging these similar ETFs down the road to create some additional scale.
I'll note that, even though it has $450m in assets, AAUS has very low volume, ~1,000 per day lately. This is probably due to the fact that most of the 351 seed money is from long-term holders with very low basis who fully intended to diversify their holdings without creating a taxable event. As a result, AAUS and its sister funds have a very distinct advantage in turnover and trading costs compared to other "new" launches in that they have a large base of assets with locked in gains from day 1. I did get a buy execution for a very small odd lot at a good price as a trial balloon last week at Vanguard.
Statistics: Posted by Walkure — Mon Sep 29, 2025 4:06 pm — Replies 3 — Views 237