Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:The Billion-Dollar Share Class Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, August 9, 2016

The Billion-Dollar Share Class

News summary by MFWire's editors

Bill McNabb and his team have created what may be the most institutional mutual fund share class ever.

Frederick William McNabb III
The Vanguard Group, Inc.
Chief Executive Officer, President, Chairman of the Board of Directors
Earlier this summer Vanguard [profile] launched "Institutional Select" shares for six of its index funds. Those shares, Daisy Maxey of the Wall Street Journal points out, require minimum investments of $3 billion to $5 billion, and offer expense ratios ranging from 1.0 to 4.5 basis points.

Vanguard's existing "Institutional Plus" shares, by comparison, cost at least 2.0 bps and have minimums ranging from $100 million to $200 million. That share class debuted in 1995.

The low-cost mutual fund titan is "currently transitioning institutional clients -- mostly defined contribution plans -- into the new share classes," the WSJ reports. Indeed, the asset figures for the institutional select versions of the six Vanguard funds haven't yet hit those minimum investment numbers in overall AUM. The biggest, the Vanguard 500 Index Fund Institutional Select Shares, had $2.8 billion as of June 30. The other five funds with institutional select shares offered so far are: the Vanguard Total Bond Market Index Fund, the Vanguard Total Stock Market Index Fund, the Vanguard Total International Stock Index Fund, and the Vanguard Total International Bond Index Fund.

Morningstar analyst Kevin McDevitt and Independent Adviser for Vanguard Investors editor Daniel Wiener both weighed in on the share class. Wiener reportedly commented that institutional shares are "really about bragging rights," while McDevitt argued that the price different is not "entirely insignificant, either." 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use