It is the end of an era at Vanguard. Gus Sauter, the portfolio manager for the firm's index funds stepped down last week as the day-to-day manger of the funds. He relinquished the duties as part of an effort to focus on acting as Vanguard's chief investment officer.

On paper at least, Sauter's shift should have little or no impact on the funds. Index funds, after all, are attractive to many investors precisely because there is no human being at the helm making decisions.

Yet, Sauter grew his reputation as a technical and trading genius who was able to use options and other strategies in order to eek out small gains while keeping the funds tracking closely to their indexes. In index land, a few basis points matter.

Presumably, Sauter's team has mastered the skills at issue, and Sauter himself remains available for them to consult. Still, it is the end of an era.  

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