| Gus Sauter|
Managing Director and CIO
chief investmet officer Gus Sauter
told investors in an article
posted on Vanguard's Web site last week that, contrary to what some might think, index funds and active funds are not mutually exclusive. Sauter came up with an interesting analogy to drive home his point.
"We believe both active and index funds can play a role in a balanced and diversified portfolio," Sauter wrote. "They're not oil and water, but more like peanut butter and jelly. Or—to use a Philadelphia analogy—like mustard on a soft pretzel."
The Associated Press
also picked up on Sauter's comments, as well as the new section that Vanguard
created on its Web site that highlights the company's 35-year history of indexing. Click here
to see the indexing section
on the Vanguard site.
Yesterday, Vanguard hosted a Webcast on indexing that featured Sauter, Morningstar vice president
John Rekenthaler and author Jane Bryant Quinn.
Armie Margaret Lee
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