Sunday, April 24, 2005
What investors couldn't afford these fees in their private Social Security accounts?
Vanguard Group -- already the low-cost mutual fund option for numerous investors -- is about to start charging many of its customers even less. The company is expected to announce today that it soon will be easier for investors to qualify for super-low-cost versions of its mutual funds known as Admiral shares. Those shares carry fees less than half of what Vanguard charges for its traditional fund shares -- in some cases, as low as 0.09% of assets.Meanwhile, if the stock market really is too risky to invest any pension money in, why are public employee pension funds 60% invested in the stock market?
The change follows a fee cut by Fidelity Investments, Vanguard's biggest competitor, which last year reduced fees on five of its index funds to 0.10% -- below those on Vanguard's Investor share-class funds, which most Vanguard investors own... [WSJ]