Some of our competitors have declared that only costs matter when selecting an index fund. John Croke, senior product manager, Vanguard Portfolio Review Department, thinks the human element will always matter.
Deciding to adopt all-capitalization strategies for four Vanguard international index funds was the easy part. Then came the matter of adding small-cap companies in a manner that would be seamless to investors.
Vanguard’s index mutual fund did not immediately “wow” investors, but has proven to be a cost-effective, household name in the investment world over the past 40 years. Our blogger takes a look at indexing over the decades.
James Rowley Jr., Vanguard Senior Investment Strategist, discusses why costs matter for both index and active funds.