The 2007 fund sales numbers are out and initial reports (see
here and
here) once again turned it into a horse race between
Vanguard and
American Funds.
FRC data show a new leader in what they report as a horse race: Vanguard was on top with net inflows of $76.2 billion for 2007, while American Funds, which had topped the sales charts since 2002, had $74.7 billion.
But none of the reports talked about the distribution channels of the fund firms. Vanguard focuses on fee-based advisors and "do-it-yourself" investors, while American Funds focuses primarily on registered rep distribution.
What that means, of course, is that neither of the two are stealing customers from the other, so it is really not a horse race at all.
 
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