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By Christine Benz and Bridget B. Hughes, CFA | 12-16-2015 02:00 PM

Vanguard Remains at the Forefront in 2015

Although the fund giant's international-stock and longer-duration bond funds slumped, the rest of their lineup outclassed the competition.

Christine Benz: Hi, I'm Christine Benz for Morningstar.com. Vanguard continues to garner a high share of the assets flowing into the fund industry. Joining me to provide a recap of 2015 at Vanguard is Bridget Hughes--she is associate director in manager research for Morningstar.

Bridget, thank you so much for being here.

Bridget Hughes: Hi, Christine. Thanks for having me.

Benz: Bridget, one of the things that you and the team keep tabs on is fund flows. This Vanguard juggernaut continues. We have seen Vanguard take in about $140 billion in new assets so far in 2015--just through November. Let's talk about where the flows are going when you look across the firm.

Hughes: Sure, Christine. First, let's start with the sheer dominance of this fund family. So far for year to date through November, they brought in $140 billion. To put that into some kind of context, that's more than the next 10 families combined going into mutual funds. So, it's a significant amount of money, both on an absolute level but also relative to the rest of the industry. It gives Vanguard $2.4 trillion in fund assets out of $3 trillion of its global assets. So, it's a significantly important piece of their business. It also has given them a 20% market share in the industry, which is about double what the next competitor has.

There are a couple of places where this money is going. First of all, the target-date series. Target date is a significant business for Vanguard, bringing in about $30 billion so far this year. In target-date land, there are three major players: Vanguard, Fidelity, and T. Rowe Price. With this year and these new assets, we've seen Vanguard really pull away in terms of market share, coming up to just under 30% market share in that target-date business.

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