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> Buy S&P ETFs, most preferably by Vanguard, because they are a non-profit and thus have very low fees Vanguard is certainly a for-profit organization [0]. Wha
by lr1970 5y ago
> Buy S&P ETFs, most preferably by Vanguard, because they are a non-profit and thus have very low fees
Vanguard is certainly a for-profit organization [0]. What, I think you wanted to say, that many of the Vanguard funds are index funds that do not have exuberant management fees.
[0] https://en.wikipedia.org/wiki/The_Vanguard_Group https://en.wikipedia.org/wiki/The_Vanguard_Group
- tjader 5y agoHe probably meant to say that Vanguard is owned by the funds themselves, not by some external private entity. That makes their incentives be more aligned with making the funds cheap and efficient.
- abeppu 5y agoBut they did spend a long time saying that they were providing services "at cost", which was eventually removed. https://www.inquirer.com/columnists/john-bogle-vanguard-scraps-plain-talk-no-profit-at-cost-20190207.html https://www.inquirer.com/columnists/john-bogle-vanguard-scra...
- shoto_io 5y agoYes, you're right, I was not precise. That's what they used to say about themselves: “The Vanguard Group is truly a mutual mutual fund company. It is owned jointly by the funds it oversees and thus indirectly by the shareholders in those funds. Most other mutual funds are operated by management companies that may be owned by one person, by a private group of individuals, or by public investors. ... The management fees charged by these companies include a profit component over and above the companies’ cost of providing services. By contrast, Vanguard provides services to its member funds on an at-cost basis, with no profit component, which helps to keep the funds’ expenses low.”