##  [# Daily ETF Watch: Feeder-Fund Quest](/sections/daily-etf-watch/daily-etf-watch-feeder-fund-quest) 

 

# Daily ETF Watch: Feeder-Fund Quest

 

 

FlexShares is embracing a trendy fund structure patented by Vanguard.



 

 

 

 

 [![HungTran_100x66.jpg](/sites/default/files/styles/author_image_icon/public/2023-02/HungTran_100x66.jpg?itok=Jtn_kOIv "HungTran_100x66.jpg")](/contributors/hung-tran) 

[By Hung Tran](/contributors/hung-tran)

 Mar 14, 2014

 Edited by: Hung Tran

 

 

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FlexShares is embracing a trendy fund structure patented by Vanguard.





 

 

FlexShares is embracing a trendy fund structure patented by Vanguard.



FlexShares has filed [regulatory paperwork](https://www.sec.gov/Archives/edgar/data/1256909/000119312514096213/d692337d40app.htm#tx692337_2) seeking permission to offer fund-of-funds ETFs and master feeder funds, a trend that is coursing through the ETF universe and embraced by other issuers including Deutsche Bank, Charles Schwab and Fidelity Investments.

Master-feeder structures have become trendy in the ETF space because of their flexibility in allowing ETFs, serving as the feeder fund, to hold assets of a mutual fund. The structure, while different, recalls a Vanguard patent on its share-class structure whereby its exchange-traded funds are separate share classes of identical open-end mutual funds.

Vanguard, which launched its first ETF under the structure in 2001, is now the No. 3 U.S. ETF company, with more than $346 billion in assets, according to data compiled by ETF.com Analytics. The patent is said to be in effect until 2019.

*There are no further filings or launches.*





 

 

 [ Hung Tran ](/contributors/hung-tran) 

 

 

  Hung Tran is a former staff writer for etf.com.   [View Bio](/contributors/hung-tran)

 



 

 


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