Morgan Stanley, the largest U.S. brokerage by salesforce, said on Wednesday it is dropping mutual funds from Vanguard Group, the largest U.S. mutual fund firm, to read more, click, Morgan Stanley Drops Vanguard Mutual Funds.
Here’s a question, Vanguard mutual funds have a liability to The Vanguard Group to the tune of $3 billion dollars, I don’t believe Vanguard ETFs have this same liability, is it better to own the ETF or the mutual fund because of this? Is JP Morgan in any way making a decision based on this knowledge? I sure don’t know, but it is interesting.
How much is Vanguard Worth, December 15, 2015 Joe DiStefano, from the article, ‘In addition to financial and professional services expenses (Vanguard has long reported its management-fee ratios), Vanguard funds have begun noting in their liability statements that they also owe “Payables to Vanguard.” The ” Payables,” a footnote says, include operating costs “such as deferred compensation/benefits and risk/insurance costs.” For all Vanguard funds, these ‘payables’ total more than $3billion.