Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Vanguard Adds Rules to Thwart Timers Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, July 14, 2005

Vanguard Adds Rules to Thwart Timers

Reported by Sean Hanna, Editor in Chief

The fund news of the morning across the nation's newspapers is that Vanguard is adding new restrictions on its funds to discourage market timers. In other words, it is a slow news day.

Vanguard's hometown paper, the Philadelphia Inquirer, quotes Burt Greenwald (a Philadelpian also) that the move reflects on Vanguard's fundementals.

"It goes back to their religious principle that everyone should be a long-term investor," Greenwald is quoted as saying. The paper also quotes a Vanguard spokesperson as explaining that the new rules will be easier to enforce and explain than the current rules.

On its Website, Vanguard explained that frequent trades raise the costs of running the fund for all investors.

The current rules apparently allow investors to make unlimited round trip trades, providing that those trades do not disrupt the funds' operations. Vanguard also levies holding-period-based redemption fees for some funds.

Meanwhile, the Wall Street Journal goes into more depth on the actual changes. It also notes that the rules will apply to 401(k) investors, but with some exceptions.

Under the new rules, shareholders will not be able to purchase shares in a fund within 60 days of selling shares in the same fund. However, an exception will be made for shareholders who repurchase shares with a mailed check. Vanguard's money market funds and VIPER ETFs are exempt from the rule.

Vanguard informed shareholders of the change as part of its June 30 account statement mailing.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use