Is this really true???WIENER: Well, because the index funds have really under performed some of the great actively managed funds at Vanguard. They've got great active funds that are low cost, just like their index funds, but they out perform. I can give you a couple of examples. Their dividend growth fund run by Don Kilbright (ph), four years he's been running the fund. The fund is up about 8 or 9 percent. Every other growth and income fund at Vanguard including the biggest index funds are down 8 or 9 percent over the same period.
Over the last 10 years, the fund or the index that tracks health care stocks is up about 140 percent. The fund that Ed Owens runs is up 140 percent. I mean and that's an index against a managed fund, you can't buy an index. You've got to have an operating expense in there. He just completely blows most people away, because he picks great stocks.
LOWELL: No question it's changed strategy for Fidelity. They just came out with a very interesting deal with Blackrock, offering 25 core Ishares funds commission free to investors. That's not just a shot across Vanguard's bow. That's a shot right through the center of the hull. And the reality is Fidelity is making a big bid for market share in the ETF space. That's said, Dan's exactly right.
Schwab with their low expense index funds and ETFs seem to be more of a challenger to Vanguard than Fidelity with the iShares ETFs