The Big Guys And Indexing

The Wall Street Journal reports that the Montgomery County Pennsylvania pension fund became concerned about investment fees and assets performance. After a lengthy review, the county has decided to shift nearly all of it’s $470 million pension fund assets to index funds run by the Vanguard Group. In doing so it will reduce fees paid to manage the asset by approximately two thirds. Currently, they are paying about 0.43% in fees to a group of active money managers from Wall Street. Under Vangua...