Vanguard, the world’s largest mutual fund company, has raised fees on two of its funds after replacing an in-house trading bot with full-fee, third-party humans. The robot, designed to manage the funds, was deemed ineffective and indentured to Vanguard’s management. The company switched to a team of human managers from Wellington Management, a third-party investment firm. The move has led to increased fees for the Vanguard International Growth Fund and the Vanguard Global Equity Fund. The company has stated that the fee increase is necessary to cover the additional costs associated with the new management team. Vanguard has pioneered using technology to manage investments, but this move shows that sometimes human expertise is still needed.
riabiz.com/a/2023/6/3/vanguard-raises-fees-on-two-funds-after-full-fee-third-party-humans-replace-ineffective-indentured-in-house-vanguard-robot
