Tag: Vanguard cross trading

Vanguard bond index funds and Vanguard’s tax-exempt bond funds engage in cross trading of bond securities, and in the case of bond index funds, in-kind purchases and redemptions. Both of these trading mechanisms serve to reduce trading costs. [1] Bond …

Vanguard bond fund trading data, FY 2019 Read More »

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One of the main arguments for investing in passive index funds is the relative assurance of reaping a fair share of market returns. But as market benchmarks bear no costs, an index fund manager needs to reduce frictional costs in …

Reducing transaction costs: cross trading and in-kind redemption Read More »

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