harley
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Someone has noticed that Vanguard is impacting the pocketbooks of the financial services companies on Wall Street. It's an entertaining article, if a little light on facts (it is Gawker, after all). The Company That's a Bigger Threat to Wall Street Than Occupy
Vanguard’s assets now stand at $3.1 trillion, which effectively means that this year alone it will have removed more than $16 billion from the financial industry just through fees. That figure is based on the average asset-weighted fee of a Vanguard fund of 0.13 percent, compared with the 0.66 percent average asset-weighted fee of an active mutual fund...
Until now, the asset numbers probably weren’t big enough to trouble Wall Street, but as Vanguard is now on pace to add a cool $1 trillion in assets every few years, it is effectively becoming a massive wealth transfer machine funneling money out of the financial industry and into individual investors’ accounts.