Vanguard, the investment management firm and exchange traded fund provider, recently launched the “5x Phenomenon” marketing campaign that emphasizes the low costs of index funds and ETFs.
According to a press release, Vanguard argues that most consumers would not pay five times more than they have to, yet many individuals don’t know that they are doing it with most investments.
“$40 for a movie ticket? $18 for a gallon of gas? $125 for the latest best-seller?” Vanguard asked.
“The less investors pay in expenses, the more of their returns they can keep, and that can compound over time,” Tim Buckley, managing director and head of Vanguard’s Retail Investor Group, said in the press release. “Americans need to save more overall to reach their long-term financial goals, and spending less on their investments automatically boosts the amount they can set aside.”