Re:Vanguard Is Growing Faster Than Everybody Else Combined
by runeks on Wednesday April 19, 2017 @01:47AM
(#14145726)
It's also possible that Vanguard just delivers the same products as their competitors, just at a significantly lower price (management cost).
Keep in mind also that "growing" in this context doesn't refer to huge profits (as far as I know). As far as I can see, as a non-expert, Vanguard just offers the same products as everyone else, except at half the yearly management cost. I mean, when you're looking for some index fund, and Vanguard is one third the cost, is it any surprise they're taking away customers from the incumbents?
Keep in mind also that "growing" in this context doesn't refer to huge profits (as far as I know). As far as I can see, as a non-expert, Vanguard just offers the same products as everyone else, except at half the yearly management cost. I mean, when you're looking for some index fund, and Vanguard is one third the cost, is it any surprise they're taking away customers from the incumbents?
EDIT: For example, here's TLT (0.15% p.a.) vs Vanguard's long term bond etf (0.07% p.a.): https://personal.vanguard.com/us/funds/snapshot?FundId=3144&... https://www.ishares.com/us/products/239454/ishares-20-year-t...