The switch from MSCI to FTSE and CRSP indexes for 22 Vanguard funds is all about three things, says Vanguard principal Joel Dickson: cost, cost, cost.
Although investors may remain broadly skeptical of equity markets, asset flow data suggest they could be taking more risk than expected in other asset classes.
Investors should keep tabs on a few key indicators as Vanguard switches the benchmarks for 22 of its index funds.
The Vanguard founder touches on why fund investors need to closely monitor expense ratios, portfolio turnover, and manager independence, among other things.
Vanguard's CIO says the fund shop is looking forward to the substantial long-term cost savings and price stability once it transitions to the FTSE and CRSP indexes, beginning next year.
Most Vanguard funds delivered another solid year in 2013, but management changes and a shift out of its fund comfort zone are things to watch this year.
For many investors, the proliferation and tradability of ETFs serves as an unnecessary diversion to an otherwise sound investment program, says the Vanguard founder and former chairman.
Although some Vanguard funds underperformed their peers during the market rally, the firm had more portfolios in the top quartile of their categories than in the bottom quartile.
The views expressed do not necessarily represent the views of Acropolis Investment Management, LLC. or its members.
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