Author Topic: The impact of low cost mutual funds (Vanguard)  (Read 2968 times)

sig606

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The impact of low cost mutual funds (Vanguard)
« on: February 03, 2016, 02:51:26 PM »
Interesting stats from a BusinessWeek magazine dated last month.


PhysicianOnFIRE

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Re: The impact of low cost mutual funds (Vanguard)
« Reply #1 on: February 03, 2016, 02:57:19 PM »
Vanguard gets a large share of DIY investor's money (and all of mine).

GrowingTheGreen

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Re: The impact of low cost mutual funds (Vanguard)
« Reply #2 on: February 03, 2016, 05:39:07 PM »
Good to hear.  I'd like to see some of the higher cost companies change their game up and start competing.

AdrianC

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Re: The impact of low cost mutual funds (Vanguard)
« Reply #3 on: February 03, 2016, 05:57:47 PM »
There's also been a momentum effect going on. Index funds are doing well, people buy what's doing well, index funds do well and so on.

The concentrated value fund managers might earn their keep again one day.

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Re: The impact of low cost mutual funds (Vanguard)
« Reply #4 on: February 07, 2016, 12:48:24 AM »
Good to hear.  I'd like to see some of the higher cost companies change their game up and start competing.

I'd like to see them wither and die.

MustacheAndaHalf

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Re: The impact of low cost mutual funds (Vanguard)
« Reply #5 on: February 07, 2016, 11:39:46 AM »
So that article was from 2015?  (Published last month, and there's a delay in gathering data, writing an article, and publishing).  I imagine for 2016 so far, we'd see a net outflow from both active and passive funds.  There's been too many loses, and too much volatility to expect every investor to stay put.

In a list of the 25 largest mutual funds, Vanguard holds 7 of the top 10 spots:
http://www.marketwatch.com/tools/mutual-fund/top25largest
#1  SPDR S&P 500 ETF
#2  Vanguard 500 Index
#3  Vanguard TSM Idx