Vanguard Slashes Fees for Dozens of Mutual Funds, ETFs

Vanguard Slashes Fees for Dozens of Mutual Funds, ETFs

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

The video discusses Vanguard's unique corporate structure, which allows it to lower fees by funneling extra cash back to investors. This structure builds trust, despite not always offering the lowest fees. The new CEO, Salim Ramji, faces challenges in improving customer service, a known weakness for Vanguard. The video also explores the potential revival of fee wars in the ETF market, driven by Vanguard's actions, and the impact on competitors.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key feature of Vanguard's corporate structure that allows it to lower fees?

Shareholders elect board members

Partnership with BlackRock

Publicly traded on the stock market

Focus on increasing revenue

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What challenge is Vanguard's new CEO, Salim Ramji, expected to address?

Increasing investment in ETFs

Expanding into new markets

Improving customer service

Raising fees for investors

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason some people believe Vanguard should focus on business investment rather than fee cuts?

To compete with BlackRock

To expand globally

To increase shareholder revenue

To improve customer service

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might drive a revival of fee wars in the investment industry?

Vanguard's fee cuts

Increased competition from BlackRock

New regulations in the financial sector

The rise of active ETFs

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In which investment categories are fee reductions expected to be more significant?

Real estate funds

Government bonds

Crypto and thematic investments

Large cap stocks

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