how do you navigate that story at vanguard? we see most investors being broadly diversified when it comes to index products, that will serve investors well, but we offer both. we offer active as well as index. but the main story for us is around low-cost, being able to do it that when we are in a lower yielding environment, you do not want to give away too much by paying higher expense ratios. that is really important in this type of environment. kathy: i would agree with that 100 percent. keeping the cost down is one thing you can control in a low-yield world, but in this case, because of the potential for energy to be a problem that , you might want to switch to active for that segment. jonathan: looking at high yield, we had a chart of default rates on the screen a little bit earlier. i always find it interesting when people bring up default rates and justify the long positions because default rates , are ok until they are not ok, and then that is a problem. that is a tough justification for me. is it for you? greg it absolu

this is the more successful launch of vanguard 1. the second satellite to reach orbit and the oldest still up there. one of the advantages of having a three and a half on satellite is it is easy to get home. this is the oldest satellite in orbit on the right. spaces me, the young historian with my brothers and sisters at our home. say it looks like late winter in washington dc. this was one week before the launch. you can see the solar cells. the battery-powered transmitter would last weeks or months at beset. had to transmitters. one was said to very slightly from the exterior temperature of the satellite. despite it being a very small satellite it actually had pretty useful scientific instrumentation. i should add that the proposal for project vanguard which one use satellites for navigation. that idea was very early in there. this is the tv3 that was being disassembled. to the right there is my father and another man who worked on the satellite. before satellite navigation, how do people navigate? i do not have time in detail. you

courtney: one word, two syllables -- vanguard.g going on in asset management, if you pull the you get to vanguard. that one decision having more impact than anything else now. is taking in over half of the money going into funds. i compare them to amazon. they are very similar companies. they are reshaping the entire industries. one ofu look at amazon, the things they do not have in common is amazon is public so it gets a lot of attention. the other thing is this. the reason you have not seen more consolidation is unlike the multiple retail where customers leave, you see it in the next quarterly earnings. that is not happen in the asset management business. last year, we saw $400 billion leave active mutual funds. get assets and the funds went up to $11 trillion because the stock market went up. the market has offset this low-cost migration. this is something that could turn into a panic. panic might be the wrong word but it could be set up before we have a flat or bear market and people are like we need to consolidate. vanguard a

investors up there with blackrock, vanguard. it's going to be interesting to see what the remaining shareholders do in response to this, but as you mentioned, i mean, a lot of it seems to be different suggestions that are there are in line with what the ceo is thinking anyway i think it just depends to what extent they agree to enact some of those policy recommendations. >> and part of my point, i guess, is people say, well, you own a small stake, relatively speaking, in such a large company, but yet, you know, they would probably counter and say, well, it's not like we had a massive percentage stake in dow. look at what we were able to do there? what's trident's percentage stake in ge? look what they have already accomplished, at least certainly in their minds, you know, you can debate sort of who is most responsible for what's taking place. but you get my point >> yeah, at the end of the day, it's not like any activist is going to hold over 50% of the shares that would just make their proposition a guarantee. so, no matter wha

you 12 will be part of our vanguard. you're the heroes. you're the patriots, the trailblazers in the best american tradition. and you're humbled to be among that group. to the 12 members of this new class of american astronauts, i say congratulations. you've already captured the respect and admiration of your peers and when you lift off the launch pad, to boldly go, you'll capture the imagination of your nation and the world. and i believe with all of my heart that when you go, you will not go alone. for as the psalmist teaches us, if you rise on the wings of the dawn, if you go up to the heavens, even there his hand will guide you. and his right hand will hold you fast. as you begin this journey, know that you will be carried by grace and by the prayers of the american people. so godspeed to the class of 2017. may god guide you and bless you. may god bless nasa, may god bless the united states. >>> the senate intelligence committee released former fbi director jim comey's written statement ahead of his appearance before the committee. her

. >> no load mutual fund with someone like vanguard.for decades. >> don't look at it for the next two decades. david: for 40, 50 years. thank you very much. have a wonderful weekend. that's it for forbes on fox, thanks for watching, keep is here, the number one business blocktinues with erbolling and cashin' in. eric: president trump taking on the elites of the world. pulling out of the paris climate agreement, criticizing germany for being unfair when it comes to trade and telling n.a.t.o. leaders to pay their fair share as they stood by snickering, and rolling their eyes. many are quick to bash our president, maybe this is what america needs, a president who looks out for american workers and taxpayers. i'm eric bolling, our crew this week, mercedes, lisa booth, rachel campos-duffy. he's calling everyone out, what do you think, is this good for

vanguard, the fidelity growth company. what does it mean for you? ken mahoney joins us now to discuss this, ken, good to see you. let's put this in perspective. over the year, tech is up about 18%. but we have completed earlier this week the biggest two-day slide in tech of the year. how concerned should people be about how much they're invested in tech in their 401(k)'s? >> they should be concerned. the f.a.a.n.g. stocks, facebook, amazon, netflix, google, people use these everyday so the leadership is pretty narrow. what we really want to do is start looking at these portfolios and start diversifying. last friday, at one point the nasdaq was down 172 points, there seems to be rotation. so most investors may stay in this party too long. they may want to rotate, much like the money managers are rotating, into other investments that get better diversification. >> but these are mutual funds. when you think about something like the fidelity 500 index, how should you think about it in that context? >> a lot of investors, 401(k) investors, have different

that's three times less than fidelity... ...and four times less than vanguard., no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. does your mouthg prescripoften feel dry?s, a dry mouth can cause cavities and bad breath. over 400 medications can cause a dry mouth. that's why there's biotene. biotene can provide soothing dry mouth relief. and it keeps your mouth refreshed too. remember while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from dry mouth symptoms. your body was made for better things than rheumatoid arthritis. before you and your rheumatologist move to another treatment, ask if xeljanz is right for you. xeljanz is a small pill for adults with moderate to severe ra for whom methotrexate did not work well. xeljanz can reduce joint pain and swelling in as little as two weeks, and help stop further joint damage. xeljanz can l

but an index-based approach from an i-shares or a vanguard offers a great diversification and a low cost structure that is appealing to many individual mark, do you think that that will change, not the indexing but the number of companies that choose to list? i mean, there are many reasons why we're seeing a shrinking pool of stocks. some of it is m&a, some of it is the ipo market has dried up. do you see this situation chaining at all or not? >> it's slightly better, sue. this year has been a better year in terms of the number of ipos for the first five months of the year. secondarily, the performance of those ipos has been quite good. nothing helps an ipo market than performance. there's that demand pull from investors. it's not to any level like we saw back in the '90s or early 2000s. usually demand and performance reign supreme. the other thing i point out is thers this infinite amount of capital and still is for private companies, and some companies that decided to stay private longer. uber has stayed private much later than any other company could or would have stayed public 20 yea

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vanguard already uses an index from a competitor, ftse, that does include mainland china stocks. the symbol is vwo. finally, this decision comes at 4:30 p.m. tomorrow. for "nightly business report," i'm bob pisani at the new york stock exchange. >>> elsewhere, the chinese version of amazon is setting records. nasdaq listed jd.com's summer sale was the biggest ever. just like amazon, jd.com sees drones as key to the future of delivery. our report tonight from beijing. >> reporter: i'm surrounded by toys, diapers, home appliances, pretty much everything that you would see in or home is at this jd delivery station. this is just one of jd's 6,900 delivery stations across the country. at this one, alone, about 10,000 packages are being shipped out. that's because yesterday, sunday, was a combination of a big summer sale for jd, june 18th is a chinese retailers' own shopping holiday. china already had singles day. but jd marked it with deep discounts. during the 18-day period, $17.6 billion worth of goods crossed its site, up 50% from last year. jd's founder says chinese consumers are

europe is in the vanguard of imposing sanctions on russia right now.ngela merkel is probably the world leader who is most concerned with sending a clear message to vladimir putin that his current policies are not acceptable. but, she wnats, together with president sarkozy, two first leaders to come to moscow to talk over the situation in ukraine. in ukraine, we are living through the tragedy of the civil war. and, you know, that is of course only the dialogue, only the understanding, not just sanctions or something like that, to improve the situation. that is my true belief. it's interesting to put this into context. it's not just the fact that the russians have annex crimea, your airforce is playing a crucial role propping up bashar al—assad in syria, but also, russia is projecting all sorts of covert cyber —based power, and soft power, around the world, sometimes through media, sometimes through perhaps less public forums. in a way, vladimir putin appears to be absolutely determined to play a role, whether it be in the us presidential election, the f

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that's three times less than fidelity... ...and four times less than vanguard.hat's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. i am totally blind. and non-24 can throw my days and nights out of sync, keeping me from the things i love to do. talk to your doctor, and call 844-214-2424. i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. lou: joining me to talk about the trump economy, fallout from the british elect and much more. steve forbes, great to have you here. i'm glad to see you out of your sling. let's get to first of all the copy hearing yesterday. the fact that these -- i have to say the senate intelligence committee looked like absolute jackasses steve * at the end of the day no one won. steve: copy admitting he -- comey admitting he lea

that's three times less than fidelity... ...and four times less than vanguard.s next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. hit could be the next big thing i should totally get that domain name... get your great idea online too... get your domain today, and get... ...a free trial of gocentral from godaddy charles: chaos in the u.k. exit polls are shaping up to show a hung parliament. we'll discuss how this impacts your wallet. charles: this is a 7-week low for the pound. it will counseled more pressure overnight as the u.k. election appears to have resulted in a hung parliament. back in the states was a pretty good day. the nasdaq hit a new all-time high. the dow jones industrial average, s & p 500, they went back and forth. but they finished in the green. this as comey's testimony was finishing, the dow hit an all-time high. despite all the theater, there was

a key reason this happens this is becausets say vanguard is already using the emerging market index whichdes these shares produced by the london stock exchange and they do not want to fall to behind in providing this information. vonnie: a little pressure. but what has been the experience of people who have been investors in this already and is it a little less -- oliver: relative to the past, i think yes. the measures the government has taken to control things in the market, at the same time, you are an investor and you do not of control and manipulation, we haven't been talking about china as much recently because people have an focus on what happens here after the election with the trump trade. with the technology company. it is a little more under the radar than it usually is. china is very much in focus. i remember drawing up similarities and you can see the amount of volatility was really on a different level. 75% higher than that of equity. in terms of the structure of domestic shares, how has it changed, if at all. 20% is alreadyd, china share. it is just not domestic ones. are an

vanguard has $1.44 billion invested in illinois.nd dodge and cox, they would be on the hook if things don't go well. the state's credit rating and bond prices have suffered and may present an opportunity for a bold investor. illinois bonds yielding 5.8%. the only problem is, here is what the state is facing. unpaid bills of nearly $15 billion, structural defend city in the $7 billion and unfunded fence liabilities of a quarter trillion dollars. i don't know if i would want to be invested that way or not. check that 401k. lou: what you are saying here when it comes to the state of illinois is that their necessity to raise money to pay those public employee pensions could overwhelm their ability to hire people for public employed jobs. >> and the state supreme court said you can't diminish those pensions and the u.s. constitution says you can't go bankrupt. that's hi-def anything of been a rock and hard place. i don't know what you do. lou: jeff flock, thanks so much. be sure to vote in our poll tonight. should president trump allow o

the command of the vanguard consisting of 50 men was given to captain william washington of the third virginia resident. lieutenant monroe offered his services to act under him which was accepted. on december 25, 1776 they passed the delaware in the evening. they hastened to a .1 .5 miles from it in which the road at which they descended intersected that which led from trenton to princeton. of purpose and orders cutting off all communication between them in the country to trenton. be guilty of a run-on sentence every now and then. he noted that the snow was falling. while manning their post, he was accosted by a local resident who thought that the continental's work british troops. describing the incident later, monroe recalled that the man was determined in his manner and very profane. a learning that the soldiers were americans, he brought food from his house and said tomorrow, i know something is to be done and i'm going with you. i'm a doctor and i may help some poor fellow. the doctor was prescient. the armies river crossing took longer than planned, meaning the attack would occu

is not vanguard driving prices low for everybody. >> there is a -- a texas match going on we're notvanguard ishares blackrock schwab a race to zero if you will in that marketplace for low cost data we're not interested in that we can't compete we don't have the skill but i think, to go along with that there is plenty of room for folks who do things different than simply provide low cost data, and if we can deliver on returns that we expect we should be able to provide, then i think we will continue to see growth in etf assets addition to a lot of flow is going into large cap funds the moment, if you want to think about where the monies moving, it seems to be that there is the a big move to outside the u.s. in exchange traded funds. >> i think that the world is wide-open i think i was first writer on financial writer covering etfs. >> a long time ago it was before the qs launched i never thought it would be this big i remember when ishares got launched i thought what the heck are he do doing slicing and diesing the market i think the world is wide-open. >> one of the things watched d

throw you or you off the trail to say look what we did look how we have taken to the forefront of vanguard and there's something else that's coming up which is going to make good this pale by comparison with that of this makes any sense well they have own countless occasions c.n.n. has gone on the air and gone after the trumpet ministration connecting them to russia with unnamed sources unsubstantiated reporting we're hearing in the news room news coming in to us this is what our reporters are telling us it's all garbage and everybody in this town knows that james clapper is the guy that is feeding see him in all of this garbage and they have nothing these investigations started back in july there's nothing on the table tonight they've interviewed everybody under the moon either that or the f.b.i. is horrible at what they do what's happening here how do you read this but what i'm saying is why this right now next point to be made russian story is officially dead what i'm hearing what other people are saying is within the hallowed halls of the d.n.c. that memo was also being said enough we

vanguard has several products that yield a lot.news is that these are going to yield about 2.8 or 3.5%. the bad news is that you are going to have overweight factors, heavy staples, utilities. they are definitely good products. the question is, what are the investors' needs? the dividends though already you less than treasuries. julie: and there are some they get more specific as etf's always do. what were some of the other choices for investors? t-div is the first textbased etf. dividends, butut not all of them. ibm, texassco, instruments, but it yields at 2%, and it supplement your lack of tech in other areas. also, d-fang. investors who are looking at t-div works that way. julie: you also have a multi-asset etf. what is that about? >> it is 20% dividend paying stocks. high-yield debt. it yields 5.6%. it is almost like doing the job of what an advisor would do. it is definitely portable to rising rates, but this is basically hitting the easy button. julie: eric, think it's a much. etf's for us at bloomberg intelligence. vonnie: c

we have got to do something we can show leadership and be in the vanguard in contributing to stemming climate change, we can't just let mr. trump wash his hands. we have to offset what the u.s. doesn't do. we can't say to future generations, we couldn't do more because mr. trump did not want to play along. we in the parliament and also member state governments and 'm particularly thinking of, german government -- we need to do more. germany is also a huge olluter. what about rules on car emissions? look at those details. these don't fit in with playing a leadership role. we have got an opportunity. with energy efficiency, to generate real jobs, jobs for he future. it requires political courage. we have to show that. the planet cannot wait for us. we cannot live without the planet. we cannot live without a climate that allows survival. let's do something. thank you. [applause] >> thank you very much, the president of the marshall islands, thank you for your engagement and your speech. thank you for the cooperation with the european union. we of the parliament support your position. tha

one thing is get cheaper, lower your fees is one way which is vanguards advise.ir active funds are taking in money. we look at all the active mutual funds and about 40 basis points, does notmore expensive help outflows. anything less and 40 basis points at least is treading water. thell 40 basis points demarcation line between cheap and expensive. only 13% of active funds are below that line now. a lot of selfre cannibalization to go there but investors want cheap and there is no getting around it. that's one way you could do it. julie: another ways maybe to repackage the strategy into an index. how does that work? if you cannot beat them join them, take your active strategy in a market fund and let's make an index out of that strategy. then we will have an etf track it. a number of indices have skyrocketed lately because of this. big jump is because companies like goldman sachs, fidelity, john hancock are taking their active strategies indexes.rting them to they are cheaper and they are more tax efficient so you can repackage yourself. julie: what about asset al

that's three times less than fidelity... ...and four times less than vanguard.no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. kennedy: tom shi through group with a mean dad and tough mom who he says instilled american values into his life. he says he wasn't a victim of strict parenting, he waltz beneficiary of it. he opens up about his road to adulthood and conservatism. this so great. there are some things in higher love, including neighbor discipline which is a lost art and everyone is tear fired it. and no one * does it any more. tom: the other day i heard a little story that there was a neighbor in my building. someone heard him say, if you don't want it, i'm going to call mr. shillue. now in i'm the mean dad in my bronx neighborhood. kennedy: i had a neighbor kid take $20 out of my wallet. i said don't do that. it's not owe kay. her dad called me and said next time can you call me

vanguard, blackrock and state street -- 1500 products are fighting over a couple hundred billion dollarsassets. the question is, will anyone care? there is already an etf from powershares. it contains a lot of old media. it is not raking in the cash. in etf's isabout 20 a hit. there are a dozen others they go right to the graveyard. the odds are against it, but we have seen crazier things happen. julie: is it smart beta? does it use factors to figure out what to put in it? eric: the screening process is so unique and the weighting process will be slightly tilt on market caps. it is smart beta, just on the edge. julie: eric balchunas, talking quincy jones. vonnie: thank you. still ahead, cibc ceo victor dodig joins us in a exclusive interview. this is the canadian lender pushing deeper into the united states. this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york and london, i'm vonnie quinn. mark: and i mark barton, this is bloomberg markets. let's check in on bloomberg "first word news." have syria and russia dismissed allegations that they are preparing for ano

what i want you to do, i always default to what warren buffett says, buy the lowest cost fund, vanguards very easy to get to. i just go with warren buffett. why? what am guying to do, argue with him? that's never been a great call >>> i'm helping you form the necessary investing strategies you need at all stages of your life today from old to young, i'm going to meet you where you are and take you where you need to be on "mad money" tonight, we're beginning in the crib. forget binkies here are the two stocks you should be buying to give a newborn a much-needed head start. and teenagers have a lot to learn, but there's an important investing lesson everyone can get from them, as well plus, from your 20s to golden years, by guide to where your money should be sitting at any age. stay with cramer >> don't miss a second of "mad money. follow @jaiimcramer on twitter. send an e-mail to mad money at madmoney.cnbc.com, or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. y ♪ at johnson's we care about safety as much as you do. that's why we meet or exceed 15 global regu

that's three times less than fidelity... ...and four times less than vanguard.at's next, no minimums? ...no minimums. hwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. there's nothing traditional about my small business. i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs, and i get back to business. ♪ of being there for my son's winning shot. that was it for me. that's why i'm quitting with nicorette. only nicorette mini has a patented fast dissolving formula. it starts to relieve sudden cravings fast. every great why needs a great how. evwheyou wantve somto protect it.e, at legalzoom, our network of attorneys can help you every step of the way. with an estate plan including wills or a living trust that grows along with you and your family. legalzoom. legal help is here. so we need tablets installed... with the menu app ready to roll. in 12

when you look at this heaping praise on to passive funds, most recently talking about this in vanguardhow difficult is it to keep the money that you have under management right now? >> we have been fortunate that we have a very diversified book of business across a number of asset classes. we do not just run fundamental active money, we also run quantitative money. what our flows have generally been across the board, fairly strong. actuallyhose flows guarantee fixed income and out of equities consistent with the chart you showed earlier, but i think we are at an inflection point. investors will start to recognize the battle you active management and want that kind of insurance protection that active management provides an difficult markets. i think we will say some changes in the flow of the pictures. vonnie: talk to us a bit about individuals, the 401(k)s, not the big wealth that you are managing for families, but the person who is managing for retirement and how that is changing as millennial's go into for a one -- 401(k) accounts. that isf the things great for millennials is that th

as you know, chancellor philip hammond has become the vanguard for a softer brexit.rrived in luxembourg he was talking about pragmatism and cooperation with the eu. he was asked about whether the u.k. might stay in the single market and he said i'm not giving the blow-by-blow account of negotiations but there was a softer tone. i did ask him whether the priority would be more on the economy and jobs, rather than immigration. here's what he told me. >> we're just about to start a negotiation we set out very clearly our desired outcome and the prime ministers lancaster house speech and in the article 50 letter that we sent. it is a negotiation and as we go into that negotiation, clearview is that we will prioritize protecting jobs, protecting economic growth and protecting prosperity. as you can see, a little bit of a softer tone before the negotiations start on monday. they are starting in brussels between brands and the eu chief negotiator starting in brussels on monday and at the same time, we've heard according to eu officials that the u.k. might exceed to separati