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I like the article because it answers its own questions.

Why does the Vanguard Index 500 get so much respect?

Through the end of July, their S&P 500 index fund has averaged a loss of 1.6 percent a year and ranked No. 1,667 by Morningstar out of 6,460 domestic stock funds for the last five years.

My translation:

Hey, the fund outperformed nearly three-quarters of all domestic stock funds. Sounds pretty good to me.

Sorry, Charlie, investors want funds that make profits, not funds that used to make profits. While Vanguard offers low management fees, broad indexes, a wonderful reputation and a huge PR and advertising budget, their managers didn't lift a finger to protect investors from the bear market's devastation.

My answer:

Sounds like three-quarters of all domestic stock funds either didn't lift a finger to protect investors, or their finger-lifting was counterproductive. With those odds, I'd rather protect myself than trust somebody else to try and probably fail to protect me.

I doubt that any single organization has destroyed more retirement wealth in the past few years than Vanguard's index funds.

My answer:

Since Vanguard is a large fund family, its funds may have lost more money in the market downturn than any other - I don't know. What I do know for certain is that Vanguard is nowhere near the top in terms of destroying retirement wealth through outrageous management expenses, sales loads, 12b-1 fees, and other hidden charges.

Rant over.

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