Vanguard Showing Through Money Flows That Investors Are Still Cost Conscious Hot

Those flows also show that investors are not tired of traditional asset classes—stocks and bonds—despite the scramble by other firms to create offerings in alternative investments. Investors in the firm’s mutual funds are also owners of the firm, a characteristic that has helped the firm keep costs contained.

 

There is less drag on returns when transaction costs and management fees are low.

Fee-based investing and a tendency to use index investing as a core strategy have benefited the firm. However, as the markets reflect continued economic improvement, investors may migrate back to actively managed funds.