Vanguard Wannabe Faces SEC Battle to Mimic Tax-Slashing Funds

  • F/m Investments files to make mutual-fund share class of ETFs
  • Vanguard used dual share class to minimize taxes for years

The Securities and Exchange Commission headquarters in Washington, DC.

Photographer: Joshua Roberts/Bloomberg 

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Vanguard Group’s best-of-both-worlds stranglehold over the money-management industry is facing a new kind of challenger.

This week Washington, DC-based F/m Investments filed to create mutual funds as a share class of its ETFs, in a bold bid to mirror the tax-saving hybrid investing vehicles pioneered by Jack Bogle’s firm more than two decades ago.