Prepared for Utah Higher Education Assistance Authority
Prepared for: Utah Higher Education Assistance Authority
Vanguard is different from the rest-and here's how you benefit
Typical
fund
Client invests in a mutual
fund, which generates a
return to the client after fees
Managed by a typical
fund company
Charges fees to
Cover its costs.
Generate a profit for
outside owners of fund
management company.
Vanguard
fund
Managed by Vanguard
Charges fees to
O Cover its costs.
No outside owners =
clients keep more of any
returns a fund earns.
The typical fund management company is owned by third parties, either public or private stockholders, not by the funds it serves. The fund management companies have to charge fund investors fees that are high enough to generate profits of the
companies' owners. In contrast, the Vanguard funds own the management company known as Vanguard-a unique arrangement that eliminates conflicting loyalties. No wonder Vanguard's average fund expense ratio in December 31, 2019 was 0.10%,
less than one-fifth that of the 0.57% industry average*. All averages are asset-weighted. Industry averages exclude Vanguard. That means Vanguard fund investors keep more of any return their funds earn.
* Sources: Vanguard, Morningstar, as of December 31, 2019.
For institutional use only. Not for distribution to retail investors.
LO
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