Why Invest With Vanguard?
Marnie Aznar, November 2003 In the wake of the scandals rocking the mutual fund industry, the importance of investing with a mutual fund company that has the best interests of their individual shareholders at heart has become exceedingly clear. The Vanguard Group has and continues to be known for its fiduciary responsibility, ethics, and integrity. Vanguard has long had a variety of measures in place to discourage harmful trading activity and protect long-term shareholders. These measures include (among others) strict trading restrictions, early redemption fees, fair value pricing, and candid communications with their shareholders. Additionally, as the average expense ratio on mutual funds has increased nearly 24% to 1.36% over the past seven years, Vanguard’s average expense ratio has dropped 16% to 0.26% during the same time period. (Source: Lipper Inc.) Vanguard is well known for its index funds. Index funds or “passively” managed funds do not try to beat the market. Instead, these
