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But they patented it, so other companies (Fidelity, Schwab etc.,) can't use it.
by djanogo 5y ago
But 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-...