Vanguard's arrival in UK bodes well for investors

Index-fund giant could inject some needed competition into the UK funds market.

Christopher J. Traulsen, CFA 18 February, 2009 | 5:09PM
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Regular readers will know well that we believe low costs are crucial to investment success and that UK investors often pay too much for funds. That's why I was pleased to see that Vanguard Investments is planning to enter the UK market: The asset management giant built its business by being the low cost provider of passive and active funds in the US retail market, and the fees it levies on funds in there are much lower than the norm in the UK. Indeed, the average TER across the retail shares of all of Vanguard's US-sold trackers is just 0.23%--lower than any single retail tracker we know of in the UK.

The firm is keeping mum about it specific plans, as it as still seeking a

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About Author

Christopher J. Traulsen, CFA  is director of fund research, Europe and Asia, Morningstar.