Re:A look behind the scenes at an index fund with Vanguard's...
by james1071 on Monday August 15, 2016 @01:48PM
(#12292059)
I am not sure that you appreciate what is involved.
Running an index fund is largely mechanical, but the main issue is dealing costs.
What Vanguard have to do is seemingly impossible, which is to deal at the mid-price every day, when they invest net inflows (or dis-invest the net outflow).
They also have to deal at the mid-point whenever the index changes (usually every quarter).
Running an index fund is largely mechanical, but the main issue is dealing costs.
What Vanguard have to do is seemingly impossible, which is to deal at the mid-price every day, when they invest net inflows (or dis-invest the net outflow).
They also have to deal at the mid-point whenever the index changes (usually every quarter).