Vanguard Group headquarters in Malvern, Pennsylvania.
Photographer: Mike Mergen / Bloomberg
Photographer: Mike Mergen / Bloomberg
Vanguard Group is folding one of its active stock funds into their giant Value Index Assets, as an indication of the pressure that cheaper passive strategies are putting on their peers.
Shareholders agreed on a plan to consolidate the $ 1.1 billion U.S. Vanguard Value Fund entered the $ 96.9 billion Vanguard Value Index Fund by Feb. 5, the company said Friday in a statement.
The index-finding fund industry is increasingly a segment of the market share from mutual funds to which portfolio managers make investment decisions. US Value Fund, which owns last on his criterion for years, he raises 22 cents for every $ 100 invested, while a Value Index Fund costs 5 cents. The U.S. Value Fund returned 9.9% year-over-year over the past five years on Thursday, compared to 12.7% for the Russell 3000 Total Return Value Index.
“The merger is a result of Vanguard’s ongoing and extensive asset monitoring program,” a Vanguard spokesman said in an emailed statement.