Re:Vanguard Is Growing Faster Than Everybody Else Combined
by pdog on Wednesday April 19, 2017 @10:24AM
(#14147893)
Active money is trading much faster these days. A smaller percentage is enough to make the market efficient.
The outflow is mostly from active domestic equity mutual funds (average expense ratio: 1%-1.5%) to index domestic equity ETFs (average expense ratio: 0.1%-0.2%), so it's really about lower costs and the relative underperformance of active management.
The outflow is mostly from active domestic equity mutual funds (average expense ratio: 1%-1.5%) to index domestic equity ETFs (average expense ratio: 0.1%-0.2%), so it's really about lower costs and the relative underperformance of active management.