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I wonder if Vanguards patented way to manage their funds to reduce taxes be affected by this settlement.
by djanogo 5y ago
I wonder if Vanguards patented way to manage their funds to reduce taxes be affected by this settlement.
- philip1209 5y agoVanguard already gets a blind eye for their management structure’s taxation because they manage the retirement accounts of so many common people without greed.
- djanogo 5y agoBut they patented it, so other companies (Fidelity, Schwab etc.,) can't use it.
- CameronNemo 5y agoOnly for two more years, though. Then Blackrock, Schwab, Fidelity, and anyone else use the same method.
- lotsofpulp 5y agoIs there still any benefit for that patent nowadays? I thought it’s all the same between index ETFs and mutual funds. I notice no difference between Vanguard/Fidelity/Schwab/ML/etc offerings.
- loeg 5y agoNon-Vanguard mutual funds might have to throw off capital gains in situations where ETFs would not. ETFs are the same anywhere. The mechanism is described here: https://www.investopedia.com/how-vanguard-patented-a-system-to-avoid-taxes-in-mutual-funds-4686985 https://www.investopedia.com/how-vanguard-patented-a-system-...
- yborg 5y agoI think that died with John Bogle, unfortunately. They charged me $50 to rollover my employer Vanguard 401k to a Vanguard rollover IRA. With their conscience gone, Vanguard will trend to the norm.