Summary Box: Vanguard expands index fund approach

AP News
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Posted: Sep 30, 2011 4:48 PM
Summary Box: Vanguard expands index fund approach

STRATEGIC SHIFT: The four mutual funds in Vanguard's LifeStrategy series will begin exclusively employing a low-cost index investing approach. Previously, those funds have used a blended strategy, with part of their assets invested in actively managed funds, and some in index funds that passively track market indexes.

ASSET ALLLOCATION: Vanguard also plans to merge its Vanguard Asset Allocation fund into its Balanced Index fund. That involves maintaining a constant 60 percent stocks-to-40 percent bonds balance, rather than making periodic shifts.

MANAGEMENT SHIFT: Vanguard's Growth & Income fund is replacing an outside manager in favor of a multi-manager approach.