>http://finance.yahoo.com/news/vanguard-gain-wall-street-pain-145617972.html
>Vanguard’s assets now stand at $3.1 trillion, which effectively means that this year alone it will have removed more than $16 billion from the financial industry just through fees. That figure is based on the average asset-weighted fee of a Vanguard fund of 0.13 percent, compared with the 0.66 percent average asset-weighted fee of an active mutual fund.
$3.1 trillion * 0.13% = $4 Billion. Vanguard made approximately $4 BILLION from fees on their index funds this year.
Hey /biz/ why are you letting your money sit stagnant in index funds instead of starting your own business?
because they're making me tons.
>>980509
>average asset-weighted fee of a Vanguard fund of 0.13 percent
0.13% means you get to keep 99.87%. If you're smart with your Vanguard allocation, you can keep 99.95%. If you don't think keeping 99.87%-99.95% of market returns is good then I'm not sure what is good in your book.
>compared with the 0.66 percent average asset-weighted fee of an active mutual fund.
0.66% is nowhere near what the average fund charges. In reality it's much higher.
All this criticism of Vanguard is because Wall Street hates low cost index funds and what's to spread disinfo to collect fees from active funds. Vanguard is the best choice for 99% of people.
>starting your own business?
Right because that's guaranteed to work.
Show me a better option
>>980509
>Vanguard made approximately $4 BILLION from fees on their index funds this year.
Bait or just stupid?
Vanguard is owned by its funds, which in turn are owned by their investors. Therefore, owning a Vanguard fund is like owning stock in Vanguard. I'm fucking thrilled to see Vanguard making money.
>>980831
how does vanguard canada work?
>>980524
I'm new here and a canadafag but all of the index funds i've seen have fees of like 2%. I'm definitely going to be buying more vanguard.
They have low fees, and many different funds. My plan is to have 1k in each fund (within reason, not if its shitty or something idk) and reap in the benefits.
>learning along the way
>>980831
Shut up fag
>>980837
>how does vanguard canada work?
Vanguard Canada is a wholly-owned subsidiary of the U.S. parent. Canadian customer benefit indirectly from the investor-owned structure in the U.S. because the parent isn't siphoning profits for the benefit of outside shareholders. So the effect is essentially, but not exactly, the same.
>>980509
>$3.1 trillion * 0.13% = $4 Billion. Vanguard made approximately $4 BILLION from fees on their index funds this year.
Yes and then they paid their employees and their own operating costs but let's just assume they equal $0
>>980847
Bitch ass nigga
>>980509
>$3.1 trillion * 0.13% = $4 Billion. Vanguard made approximately $4 BILLION from fees on their index funds this year.
That's 4 billion in revenue, not profit.
>>980994
Any since everything is run at cost, profit should be 0
>>980918
>Yes and then they paid their employees and their own operating costs but let's just assume they equal $0
They also pay some outside firms to manage some of their funds (e.g., PRIMECAP, Wellington, William Blair, Oaktree, Lazard, etc.). Indeed, most of Vanguard's actively-managed funds are run by one or more external advisors or sub-advisors.
Not that there's anything wrong with that. The fees charged for these funds are almost always less than the external advisors charge their own clients.
But, relevant to this thread, it is an expense nonetheless.
>>981232
Cocksucker
>>981232
iHaz you are the only informed person in this cesspool
>>981661
Lol iHaz you still samefagging you little queer?
>>980509
But then if have to deal with normies familia
