“We negotiated licensing agreements for these benchmarks that we expect will enable us to deliver significant value to our index fund and ETF shareholders and lower expense ratios over time,” Gus Sauter, chief investment officer at Vanguard, said in a recent Reuters report. [Emerging Market ETF Battle]
Dickson tells Lydon that Vanguard saw an opportunity to help return the economies of scale back to the ETF investor with new index licensing agreements.
Meanwhile, major index providers “have converged over the past decade in terms of best practices and methodology,” he added. This trend has resulted in more choice for investors for indices that provide market exposure.
Watch the video to see the full interview.
