MutualFundWire.com: Jaffe Asks Whether Industry Will Follow Vanguard

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Tuesday, October 22, 2013

Jaffe Asks Whether Industry Will Follow Vanguard

Last week, Vanguard [profile] simplified some of its offerings as well as cut down on the barrier of entry to its Admiral shares--in effect making Vanguard cost effective enough to compete more with ETFs.

Now, MarketWatch columnist is wondering whether the industry will follow Vanguard's lead.

The devil is in the details, here is the gist of what he expects consumers will be expecting as a result:

That said, the move is more proof that ETFs are not just taking market share from traditional funds, but also pushing operating costs down; you should be looking for similar cost savings from other fund firms (and looking to make a change if you invest with a firm that refuses to keep up).