Vanguard says it will close the funds it owns for its mutual fund portfolio after a decade of steady growth and losses.
Vanguard Energy Fund (VET) will be closed for the last time in its history on Jan. 6, 2018, the company said in a statement on Monday.
The fund’s shares fell about 1% to $22.40.
The funds will be replaced with a new set of funds that are designed to focus on specific risk areas, the statement said.
VET was founded in 1994 and focuses on investment strategies, such as the global investment business, corporate strategy, and financial products and services.
It has a total market capitalization of $3.8 trillion.
The new funds will focus on “fundamentals that are essential for investors,” VET said in its statement.
The company’s chief executive officer, William O’Neal, said the new funds’ strategy is designed to provide “a more consistent and secure way to invest” while maintaining VET’s “fundamental strength.”
Vanguard says it is in the process of buying another fund from its parent company, Vectra.
The company has been struggling with low returns for some time.
Vectra’s portfolio of mutual funds fell 2.4% to a record low of $2.2 billion in early trading Monday.VET’s latest performance came as the market was recovering from a weeklong slump.
The Nasdaq composite index was up 0.6% at 21,839.10.
