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No. of Recommendations: 9
I like the article because it answers its own questions.

Question:
Why does the Vanguard Index 500 get so much respect?

Answer:
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.

Article:
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.

Article:
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.

dan
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