10.03.25

Vanguard Rivals Finally Get Hands on Its Tax-Busting Fund Design

by: Emily Graffeo; Loukia Gyftopoulou

For more than two decades, Vanguard has enjoyed a competitive edge with its patented structure that combines mutual funds and exchange-traded funds (ETFs), delivering tax efficiency and billions in savings for investors. That advantage is set to fade as the U.S. Securities and Exchange Commission prepares to allow Dimensional Fund Advisors and roughly 80 other asset managers, including BlackRock, Fidelity and T. Rowe Price, to adopt the same design. The model creates ETF share classes within mutual funds, potentially reshaping fund performance, taxes and retirement investing. Industry experts expect broad adoption within a few years.

Read the full article on Bloomberg