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Yes, long term Vanguard client here. Because I opted to go with someone with lower costs the other funds are unhappy and want Vanguard to pay more in taxes? S
by AstroJetson 11y ago
Yes, long term Vanguard client here. Because I opted to go with someone with lower costs the other funds are unhappy and want Vanguard to pay more in taxes?
So does the shoe then fit if Vanguard triples their fees making them the most expensive, do the other management companies then need to pay taxes on the difference between their now lower fees and Vanguards?
I think this is a ploy by the management firms that are being undercut and in a tight market (or a down market) the management fees become important.
- morgante 11y ago> I think this is a ploy by the management firms that are being undercut and in a tight market (or a down market) the management fees become important. I'm pretty sure it is almost exclusively a ploy by David Danon (who brought this complaint) to extract a massive whistleblower fee.
- AstroJetson 11y agoGood point. I'm pretty sure that Vanguard has thought this through. The article says "Danon collected a $117,000 whistle-blower bounty in Texas in November, meaning that Vanguard paid the state at least $2.3 million. It’s possible that Vanguard’s payment had nothing to do with the fee issue." So I'm going to guess it's some other arcane thing they missed.