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The Vanguard Group has overtaken Fidelity Investments and become the largest mutual fund company in the U.S.. According to the statistics provided by the Investment Company Institute which is the trade organization of the funds, Vanguard boasts 1.3 trillion dollar worth of assets. Fidelity follows closely as the second largest mutual fund company with 1.2 trillion dollar worth of assets. In addition, Capital Research and Management whose subsidiary is the American Funds, owns 988 billion dollar worth of asset ranking the third place.
Vanguard Total Stock Market Index fund has enjoyed an annual average rise of 1.3% in the last decade. It characterizes with good performance ever since. It is the largest fund in Vanguard among all the other classes of investment vehicle. It now has about 113 billion dollar worth of asset value.

The second largest fund in Vanguard is the Vanguard Prime Money Market with annual yields of 0.1%. This number might be a good performance for a money fund yet it would not be counted as desirable income. Dan wiener who is the editor of a news letter, The Independent Adviser for Vanguard Investor, shared his view on Vanguard’s advantage and disadvantage with us. He said that low costs of funds could beat other funds in a low-yields environment. This holds particular truth for the currently popular bond funds. However Vanguard dose not has low costs but rather it has created some other channels to distribute its asset such as funds traded in foreign exchanges and has done a good job which dispersed the rumors and worries of the public on their venture. Vanguard now has 62 ETFs coupled with 126 billion dollar US funds.

Another factor which accounts for Vanguard’s success is the mistake of its rival. Fidelity has remained to be an extraordinary performer in the past together with many of its offerings, it stumbled at the moment. Fidelity’s second largest fund is the Fidelity Diversified International with 34 billion dollar worth of assets. It has achieved great performance in the past few years. Fidelity Magellan and Fidelity Equity-Income is also the case with respective asset value of 22 billion dollar and 13 billion dollar. Wiener said though the American Funds performs strongly, investors might still opt for other means of soliciting advices for the money will be passed onto a third party, the brokers.

News: ETF is an Emerging Markets fund planned by Grail. Grail actively managed ETF. It has won the approval from Securities and Exchange Commission for public offering. Peritus High Yield has made full preparation and is ready to have a try at any moment. Some changes of fund managers: Templeton Global Opportunities starts to reconstruct its management team with Alan Chua as the team leader and Joanne Wong and Cindy Sweeting assisting the work. Gerald Perritt is not in charge of the management of Perritt Emerging Opportunities while his co-manager Michael Corbett stepped in his shoes. William Bales resigned from Janus Venture.And his work were then delivered to Brian Schaub and Chad Meade.Hakan Castegren passed away on Oct. 2th. He was Harbor International’s lead manager.

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