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Low-Cost Vanguard Attracts Billions in Assets

Vanguard, one of the world’s largest mutual fund companies, also has carved out a strong niche as a provider of exchange-traded funds (ETFs) that fit the investment firm’s focus on keeping its management expenses low.

In 2013, Vanguard’s funds incurred an average expense ratio of 0.19%, compared to the industry average expense ratio of 1.08%, according to Lipper, which provides fund information and analysis. A low expense ratio has been a hallmark of Vanguard funds since the company’s launch in 1975.

Vanguard’s ETFs actually are regarded within the investment company as a share class of its mutual funds. Those ETFs combine the benefits of low cost and diversification provided by investing in indexes, along with the opportunity to know the share price at a given moment before selling shares. In contrast, a mutual fund prices its shares at the end of the trading day, and an investor is forced to accept that sale price without knowing it when the sell order is placed.

Read more about Vanguard and its low-cost ETFs at Eagle Daily Investor.

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Low-Cost Vanguard Attracts Billions in Assets

Vanguard, one of the worldâ??s largest mutual fund companies, also has carved out a strong niche as a provider of exchange-traded funds (ETFs) that fit the investment firmâ??s focus on keeping its management expenses low.

Vanguard, one of the worldâ??s largest mutual fund companies, also has carved out a strong niche as a provider of exchange-traded funds (ETFs) that fit the investment firmâ??s focus on keeping its management expenses low.

In 2013, Vanguardâ??s funds incurred an average expense ratio of 0.19%, compared to the industry average expense ratio of 1.08%, according to Lipper, which provides fund information and analysis. A low expense ratio has been a hallmark of Vanguard funds since the companyâ??s launch in 1975.

Vanguardâ??s ETFs actually are regarded within the investment company as a share class of its mutual funds. Those ETFs combine the benefits of low cost and diversification provided by investing in indexes, along with the opportunity to know the share price at a given moment before selling shares. In contrast, a mutual fund prices its shares at the end of the trading day, and an investor is forced to accept that sale price without knowing it when the sell order is placed.

Read more about Vanguard and its low-cost ETFs at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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