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What's wrong with experimenting with cryptocurrencies? It's not like they're taking away resources from their main business to blow on bitcoins. (Though Vangua

What's wrong with experimenting with cryptocurrencies? It's not like they're taking away resources from their main business to blow on bitcoins. (Though Vanguard is probably still a better choice regardless.)

dankohn1 9y ago
I want the CEO of my mutual fund company to be focused on how to index better, not on cryptocurrencies.
- icelancer 9y ago
  God forbid they do both.
- atomical 9y ago
  Why not just buy ETFs?
  - dankohn1 9y ago
    Vanguard sells the very best ETFs (that are simply additional share classes of their mutual funds) exactly because they are so focused on indexing.
    - astura 9y ago
      Schwab has the lowest cost index funds ETFs: https://www.schwab.com/public/schwab/investing/accounts_products/schwab_index_funds_etfs https://www.schwab.com/public/schwab/investing/accounts_prod... Additionally, Fidelity offers index funds at a lower cost than Vanguard: https://www.fidelity.com/mutual-funds/investing-ideas/index-funds https://www.fidelity.com/mutual-funds/investing-ideas/index-...
      - toomuchtodo 9y ago
        Vanguard is a mutual company. Whatever savings that they can extract from efficiency gains they pass along to their customer base. Also, Fidelity's index funds are loss leaders to retain funds that were flowing out to Vanguard.
        srtjstjsj 9y ago
        > Vanguard is a mutual company. Whatever savings that they can extract from efficiency gains they pass along to their customer base. That's irrelevant if they those gains are less than a competitor's discounts. > Also, Fidelity's index funds are loss leaders to retain funds that were flowing out to Vanguard. So?
        desdiv 9y ago
        >So? Loss leaders are by their nature unprofitable and thus will go away as soon as they're not required. Suppose if Vanguard disappears, then Fidelity will hike their rates up. On the other hand, if Fidelity disappears, Vanguard won't hike their rates up because they won't bite the hand that feeds them since it's their own hand.
        dx034 9y ago
        You can trade daily, why not keep the Fidelity ETF until they hike prices?
        jsoc815 9y ago
        https://www.bloomberg.com/news/features/2016-04-20/the-wine-mogul-vs-fidelity https://www.bloomberg.com/news/features/2016-04-20/the-wine-...
        astura 9y ago
        If low cost index funds are unprofitable then please explain how BlackRock is making so much money off of them? https://www.forbes.com/sites/greatspeculations/2015/01/13/record-etf-inflows-likely-to-drive-blackrocks-profits-to-all-time-high/#57894f8d2c17 https://www.forbes.com/sites/greatspeculations/2015/01/13/re...
  - rightos 9y ago
    That's Vanguard's main product.
- mrb 9y ago
  Fidelity does more than just mutual funds: wealth management, investment advice, brokerage, etc. It would be outright negligent for a company like them to not "educate themselves" (CEO's words) on cryptocurrencies as one of many available investment options.
- astura 9y ago
  Fidelity is not a "mutual fund company," they are a pretty full scale financial services company. They offer more than just index funds, including (but not limited to) actively managed funds, life insurance, a checking account, a credit card, etc...
- rmrfrmrf 9y ago
  Diversification.
quickben 9y ago
Perception. Big money tend to be conservative. Crypto is the very definition of volatile in their eyes. So yes, fidelity may not mix the two, but Fidelity is "losing focus" in their eyes.

dankohn1 9y ago

I want the CEO of my mutual fund company to be focused on how to index better, not on cryptocurrencies.

icelancer 9y ago
God forbid they do both.
atomical 9y ago
Why not just buy ETFs?
- dankohn1 9y ago
  Vanguard sells the very best ETFs (that are simply additional share classes of their mutual funds) exactly because they are so focused on indexing.
  - astura 9y ago
    Schwab has the lowest cost index funds ETFs: https://www.schwab.com/public/schwab/investing/accounts_products/schwab_index_funds_etfs https://www.schwab.com/public/schwab/investing/accounts_prod... Additionally, Fidelity offers index funds at a lower cost than Vanguard: https://www.fidelity.com/mutual-funds/investing-ideas/index-funds https://www.fidelity.com/mutual-funds/investing-ideas/index-...
    - toomuchtodo 9y ago
      Vanguard is a mutual company. Whatever savings that they can extract from efficiency gains they pass along to their customer base. Also, Fidelity's index funds are loss leaders to retain funds that were flowing out to Vanguard.
      - srtjstjsj 9y ago
        > Vanguard is a mutual company. Whatever savings that they can extract from efficiency gains they pass along to their customer base. That's irrelevant if they those gains are less than a competitor's discounts. > Also, Fidelity's index funds are loss leaders to retain funds that were flowing out to Vanguard. So?
        desdiv 9y ago
        >So? Loss leaders are by their nature unprofitable and thus will go away as soon as they're not required. Suppose if Vanguard disappears, then Fidelity will hike their rates up. On the other hand, if Fidelity disappears, Vanguard won't hike their rates up because they won't bite the hand that feeds them since it's their own hand.
        dx034 9y ago
        You can trade daily, why not keep the Fidelity ETF until they hike prices?
        jsoc815 9y ago
        https://www.bloomberg.com/news/features/2016-04-20/the-wine-mogul-vs-fidelity https://www.bloomberg.com/news/features/2016-04-20/the-wine-...
      - astura 9y ago
        If low cost index funds are unprofitable then please explain how BlackRock is making so much money off of them? https://www.forbes.com/sites/greatspeculations/2015/01/13/record-etf-inflows-likely-to-drive-blackrocks-profits-to-all-time-high/#57894f8d2c17 https://www.forbes.com/sites/greatspeculations/2015/01/13/re...
- rightos 9y ago
  That's Vanguard's main product.
mrb 9y ago
Fidelity does more than just mutual funds: wealth management, investment advice, brokerage, etc. It would be outright negligent for a company like them to not "educate themselves" (CEO's words) on cryptocurrencies as one of many available investment options.
astura 9y ago
Fidelity is not a "mutual fund company," they are a pretty full scale financial services company. They offer more than just index funds, including (but not limited to) actively managed funds, life insurance, a checking account, a credit card, etc...
rmrfrmrf 9y ago
Diversification.

quickben 9y ago

Perception. Big money tend to be conservative. Crypto is the very definition of volatile in their eyes. So yes, fidelity may not mix the two, but Fidelity is "losing focus" in their eyes.