« Choosing the Road to Prosperity: Why We Must End Too Big to Fail –Now | Main | Comments on Q1 2012 »

Vanguard crushes costs

Behold Moore's Law at work with scale:

Expense ratio changes announced for a number of Vanguard funds and ETFs.

The diversification of the S&P 500 now costs only .05% pa in fund expenses! On a percentage basis these reductions are huge.  This puts more and more pressure on active managers by increasing the amount of sustainable alpha they need to generate to carry their costs. Conversely, indexing makes more & more sense, but we already knew that, yes?


Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
All HTML will be escaped. Hyperlinks will be created for URLs automatically.