Vanguard Group’s ETF efforts have been respectable lately, but while nobody was looking, Vanguard’s total mutual funds’ sales topped all competitors’ through May 2007. Fidelity and American Funds lagged behind Vanguard for the first five months of the year. The demand for low-cost, index-based mutual funds and ETFs is healthy, as Vanguard’s long-term net inflows totaled $39.5 billion through May, up 84% from the first five months of 2006. Investors’ focus on fees and taxes is giving Vanguard the edge they want, reports Kathie O’Donnell for InvestmentNews. In addition, Vanguard had 46% of the market share for index funds as of May 31. ETFs are the biggest attribute for Vanguard’s increase in assets. Vanguard offers some of the lowest expense ratios and fees in the ETF industry.

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