Category: Indexing

Index fund investors can select low cost index funds from large, well-known firms such as Fidelity, Schwab, and Vanguard. One aspect of index fund investing involves the income generated by a fund lending its securities to institutional borrowers. A fund’s …

Index fund net security lending income (2018) Read More »

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Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year.[1] The reports provide information that can highlight some of the underlying conditions affecting a fund’s future capital gains distribution outlook; an indication …

Under the hood – Vanguard international index funds in 2019 Read More »

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The following tables provide tracking error data for Vanguard treasury bond index funds. Tracking error is the ultimate measure of judging an index fund manager’s performance. Vanguard offers four treasury bond index funds, three nominal treasury bond funds, covering short-term, …

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The table below provides US stock market returns for 2019 as measured by major index providers. 2019 returns Note that index providers have differing metrics for defining size and style dimensions, and employ differing transition metrics for stocks migrating from …

2019 US stock market index returns Read More »

Vanguard’s suite of U.S. stock index funds are benchmarked to CRSP indexes. In addition, Vanguard offers sets of U.S. exchange-traded funds benchmarked to Russell and S&P indexes. In 2015 the CRSP index funds had lower turnover rates  in most style categories when compared to the Russell and S&P funds. This continues a trend established

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John Bogle, in various writings, argued that his decision to create value and growth index funds was based on meeting the tax, risk, and return needs of investment clienteles during their investment life cycles. Growth index funds were designed for …

Dividend Yield: Value vs. Growth Read More »

Vanguard issues annual reports for the firm’s international and global index funds on October 31 of each year. The reports provide information that can highlight some of the underlying conditions affecting a fund’s future capital gains distribution outlook; an indication of a fund’s foreign tax credit; the level of security lending in each fund, and […]

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The table below provides US stock market returns for 2018 as measured by major index providers.

Vanguard has a policy of returning 100% of after expense security lending income to its mutual funds that lend securities. The Statement of Additional Information to a fund prospectus itemizes security lending income and expenses so that the net percentage …

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Schwab stock index funds earn additional income by lending securities to qualified institutional borrowers. A fund’s expenses are paid out of fund earnings. Given that the US tax code gives a tax preference to dividends that qualify for lower tax …

Schwab index fund security lending in 2017 Read More »

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