Gus Sauter Vanguard Group Managing Director and CIO

Vanguard 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. 

Edited by: Armie Margaret Lee


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