One area of strength is the firm’s favorable fees for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors’ returns. Fees for the firm's funds, on average, are within the cheapest quintile of category peers. Active Passive has brought continuity to its product shelf, with low portfolio management turnover compared with peer firms over the past five years. Active Passive's longest-tenured managers do not possess comparable experience as teams at other firms, a cause for concern. Specifically, average asset-weighted tenure within the firm is one year. As such, there is less confidence in the group's ability to manage capital through a full market cycle effectively.
Vanguard Case Study: Active vs. Passive Investing
What if Vanguard shareholders had invested actively, rather than with the company’s Growth and Value Index funds?