For years, Vanguard
has been rocking the world with low cost. Now the firm's CEO wants to rock it with low cost plus.
In a CNBC
, Bill McNabb
is reportedly closely watching the development of smart beta strategies to build out from its index products.
In the CNBC story, McNabb had this to say:
It's just another way of doing active management. It's maybe a lower cost way of doing active management and that's what gets our interest.
To bolster this point, McNabb noted that 40 percent of his firm's $2.75 trillion in assets are in active funds.
He had this to say on the subject in the CNBC story:
We think active and passive can work together, but the key point is we believe in low-cost active. If you have a high-cost active fund, it's a loser's game.
And the hits just keep on coming for active managers.
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