This is nonsensical. Every active fund has a passive index as its benchmark. The link to all the active funds are right there in the lefthand column, and the passive index benchmarks the funds use are right in the performance section. So of course Vanguard is talking active vs passive when discussing their active funds, even if they're also talking about outperforming their peers.Your link is talking active vs active, not passive.Here you go, just for starters:There's zero evidence for this because if they wanted to "peddle" higher cost products, then they would release papers that show active management beating passive management or passive funds are creating bubbles, etc. Do you think they care about 5 bips of VXUS over VTI? Why wouldn't they want the meaty active ones in the 40+ bps range?1. Valuations are not actionable and are thus meaningless.Let's try not to create conspiracy theories on zero evidence. These brokerages are following valuation models and international has had a low valuation relative to the US for quite some time now. Valuations can remain high in one class and low in another for decades. That's why it is hard to act on it in a market timing capacity. The fact that international didn't pan out like the predictions stated does not mean they are trying to sell you more international funds in some disingenuous way because they kept predicting it will. It's simply because the valuation gap between the US and international still remains high.
If they had predicted that the US would handily outperform international 10 years ago based on nothing, that would have been worthy of a conspiracy theory.
2. Vanguard increasingly peddles higher cost products and there is no reason to believe higher cost index funds would not be part of that strategy. So to say there is zero evidence for this is also meaningless.
https://institutional.vanguard.com/inve ... 0%20years.Those 5 bps rake in an additional $35,000,000.00 annually. So you tell me.Do you think they care about 5 bips of VXUS over VTI?
If they weren't, there would be no reason for active funds. Unless of course someone wanted to pay for underperformance of a passive index.
Statistics: Posted by Charles Joseph — Sun Mar 31, 2024 2:14 pm — Replies 54 — Views 2995