AP News

Vanguard switches to lower-cost fund benchmarks


BOSTON (AP) — Vanguard Group is switching to lower-cost benchmarks for 22 of its index mutual funds.

The nation's largest fund company expects Tuesday's announcement will eventually lead to lower expenses for investors in funds holding more than half a trillion dollars.

Those funds currently track indexes, or groups of stocks in certain market segments, licensed from the firm MSCI. Sixteen funds investing in U.S. markets will track newly developed benchmarks from the University of Chicago's Center for Research in Security Prices. Another six funds investing in foreign stocks are moving from MSCI indexes to benchmarks from FTSE.

Vanguard, based in Valley Forge, Pa., negotiated licensing agreements to use the new benchmarks at lower costs. A spokesman says it's premature to discuss when investors in the affected funds will pay lower fees.


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus