Popular winds have caught the sails of mutual fund giant Vanguard like no other in recent years, but the firm’s exploratory fleet sailing to Europe and Asia-Pacific isn’t loaded with the same goods that produced the bulk of its $4.4 trillion American bounty — index funds.
The new globetrotting Vanguard armada is championing active funds, according to a Bloomberg report by Rachel Evans and Dani Burger.
“We’re trying to catch up with what we’ve already done on the indexing side, to be able to offer low-cost, high-quality, active products to investors on a more global basis,” said new CIO Greg Davis.
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Active funds are still more popular across the ocean, and Vanguard is pitching its ultra-low 0.22 percent ETF fees and 0.6 percent mutual fund fees against a European industry average of 1.02 percent in fees.
“Because our size, our scale, and our ownership structure is so unique, we have this natural ability to continue to lower cost,” Davis said.
The new international outreach has harbored in a new Shanghai office and one to come in Germany.
Read more about the global expansion on Bloomberg here, and check out previous VISTA Today coverage of Vanguard here.
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