vanguard, less than $4 billion. why target vanguard as saying they can do better?eff: vanguard is doing well, and this speaks more to the industry at large. we looked at it and said let us talk about a couple of index funds, and the totals stock market index. how much does it cost to run those two funds and compare it to the past? if you look at 1993, the average expense ratio of shareholders paid 14 basis points. today, it was five basis points. moving in the right direction, we can applaud that. turn them into dollars and not percent. that is around $70 million in 1993, today, $1.3 trillion across those funds turns into an expense of $600 million. if vanguard is running funds at cost, they can do those at $17 million in 1993. the numbers are still pretty large even at vanguard. scarlet: it is pretty mammoth so the numbers will be large. it may be the king passive, but they do have active mutual funds as well and they do well. about half of the active funds are outperforming in an industry where only one third do typically. it is surprising because vanguard does n

scarlet: there's a lot of concern vanguard and big issuers like vanguard enjoy these unfair advantagesat least the smaller issuers, like exponential, behind. what do you think about that? is there an uneven playing field? >> i see it coming, we have better funds and technology. if you look at the innovation in the space, it is with startups and smaller boutique companies. so we are starting to see gates put up all over the industry, whether it's no transaction fees, wire houses, minimum asset levels being used as a bogey for liquidity when in fact it is not a good measure of liquidity. looking at the liquidity of the etf and accessible liquidity of the underlying estimates, we are looking at the liquidity of the fund itself. how much are you spending on distribution? then we have a regulatory framework saying let's get away from cost benefit and look at costs, because there is liability in a higher cost fund, even if you think it is better for your investor. the safer move is to buy the cheaper fund. so there are a lot of winds blowing one direction. it is a concern. where -- when you

scarlet: yet there is a lot of concern that vanguard and big issuers like vanguard enjoy these unfair advantages. it leaves the smaller issuers, like exponential behind. what do you think about that? is there an uneven playing field? phil: i see it coming, we have better funds and technology. if you look at the innovation in the space, it is with startups and smaller boutique companies. we are starting to see gates put around those boutique companies, all over the industries. whether it is no transaction fees, wire houses, minimum asset levels being used as a bogey for liquidity when, in fact, it is not a good measure of liquidity. instead of looking at the liquidity of the etf and accessible liquidity of the underlying instruments, we are looking at the liquidity of the fund itself, which is a function of distribution. how many salespeople do you have? how much are you spending on distribution? then we have a regulatory framework saying let's get away from cost benefit and look at cost. let's just look at cost, because there is liability in buying a higher cost fund, even if you thin

how vanguard uses ftse trees in etf to escape in its usual fronts.hat this may mean for smaller issuers. the changing face of active. we speak with a representative of oppenheimer funds talking about active versus passive -- about the active versus passive debate. the final frontier. we export the missions of ufo, a new etf that offers investors a ride into space. whether you embrace or reject etfs, there's no getting around their influence. closer often an indicator for market sentiment. how are etf investors is handling the first big rough patch of 2019? eric: this will be interesting. our first down day on tuesday. the market was down. i have been saying this has been a lot like 2017, the utopian setting. even 2016 had a few down days. 2018 had dozens of days like this. if you look at outflows, it's what i expected. there's a variety of asset classes, large-cap, tech, junk bonds, small caps. they have two things in common. there is a risk on etfs. they are super liquid used by traders. usually they freak out at everything. let's look at how. these

it is something vanguard patented in the early 2000's.ome of the tax advantages etf can realize using heartbeat trades actually apply to the mutual funds, as well because of this connection. it has been a huge win for the investors and man guards -- vanguard's mutual fund to have these advantages in capital gains taxes. this patent will expire in a couple of years. the question is whether other issuers may want to copy that strategy, as well. eric: i have heard 2 sides of this. if someone says you have to pull money out of the click, it will be bad. then the side says i love this, it would be not to do. where do you fall? >> it is brilliant. not -- it makes the mutual fund investors more tax friendly and the investors more friendly. when it expires, we may see multiple launches of etf share classes so they can take the tax benefit and translate it into their mutual fund. it would be great if we can all be afforded patents on our ideas. scarlet: there's a lot of concern vanguard and big issuers enjoy these unfair advantages. at least the s

group and tim, you represent the vanguard group as the ceo. congratulations on the award. >> tyler, thank you. >> i know jack bogle for a long time and would be proud to get this award what did bogle's legacy mean to this company >> so many people think of his legacy as the pioneer of indexing, he's really so much more he's really what this award is about. putting the client first. >> he always talked about giving the investor a fair shake and that is what you all have strove to do through low fees >> we're driving them lower and lower. index funds, people have matched us on fees but fees can come down more on active management in places like advice and morning star did a study and they looked at across complexes and twice the feed level. >> some of your big competitors have come in with zero fee entries in the past year that must have shaken you up a little bit. >> for us, putting the client first in everything you do and make sure it's easy for us our structure -- >> it's different. >> very different. we're owned by our clients funds own van

vanguard,e mathias of please stay with us. up monday with the huawei ceo, really the focal point now of the u.s./china trade dispute. lisa: they are a major technology company in the crosshairs here. says: coming up, the faa discussions about the boeing 737 max 8 planes have been productive. more on that in today's bottom line. this is bloomberg. ♪ david: time now for the bottom line, where we took a look at three companies worth watching. coffee just did an ipo ended well, and now not so well. people are worrying that they are spending money to expand in china at a time that is so rocky with trade. lisa: the initial reaction could be a knee-jerk, down by another 7%. meanwhile, looking at beer. the beer industry is blaming trade disputes for the loss of 40,000 jobs. what i find interesting is it seems like a pretty convenient excuse. the are saying aluminum cans just cost too much. they are not mentioning that consumption is down 1.5%. david: finally, boeing. brooke sutherland is here to explain. have they gotten this fixed ye

from insula people and got i phones and android phones this vanguard has been democratized that's true that that's a common misunderstanding so one misunderstanding is to associate the knowledge economy only with it dance manufacture i tech industry in fact it is present in every part of the occurrence. me including intellectually dense services and even perception or scientific agriculture but every part as a friend and the other misunderstanding is to suppose that anyone who buys the products and services of the knowledge economy becomes part of it that also isn't true the knowledge economy is not just a collection of gadgets and the use of these gadgets it's a revolutionary way of organizing work and production for example among among its deeper characteristics that it has not fully developed and revealed because of its confinement are there are these so first of all the most universal constraint in economic life historically has been what we call diminishing marginal returns you commit and employ or an innovation to the process of production the return to a initially increases then

what vanguard has done by attaching an etf to its mutual funds, it is basically able to use these toalysis machine for its fund complex. joe: who are the winners and losers in this? it is good for the shareholders in the funds, right? >> etf shareholders, also be mutual fund shareholders. that is different to other wherey's mutual funds, they get hit with a capital gains tax every time someone exits the fund. it is one of the unfairness is people .2 in the system. the big losers are probably twofold. on the one hand, the u.s. treasury, which is getting tax at the moment. they might get it eventually. i guess the other people would be managers generally. they are not able to take advantage of this patented structure. it makes their mutual funds more efficient. caroline: it is a fascinating story that is complex, and you made it simple for us. don't miss this, the bank of england announcing its rate decision followed by a press conference from governor mark carney. much -- i will be watching more economic data. romaine: the maker of vegan chicken and beef substitutes plans to start tra

some of the other funds i mentioned, blackrock, vanguard, they give the money back to shareholders.he fight on these is cutthroat. is there a story developing where you think the money will not go back to shareholders is fidelity decides to push into fees the others will follow and that will have implications for shareholders. miles: vanguard already gives back quite a bit. 98% ofd gives back about the securities running revenue to its funds. fidelity will give back at least 90.1%. they could decide to give back even more on -- more than that. even if you are keeping the revenue, you can do other things that might enable you to lower .he management fee vonnie: we have indices up 1%. the nasdaq up 1.2%. we are crawling back. we lost 700 points on the nasdaq yesterday and already back up 250 of them. ,etailers are dragging broadly with ralph lauren the worst performer. right now the index is up .75%. several digital retails are higher. this is bloomberg. ♪ vonnie: we are just getting headlines from president donald trump. he says the u.s. has a dialogue going with china. the president

one is the vanguard value fund. can't get more vanilla than that.oshares trust altra vix short-term futures. i like this guy. td ameritrade reports the way millennials invest. they do something like this. they do a boring vanguard, then they will go crazy with gambling, triple leverage oil -- leveraged oil. if that is your only investment, that is probably not good. 99.9% since down inception. romaine: what about trumps fund? all office rates -- reits? wemp had a lot of -- eric: did look at trump's. you could probably replicate half of his holding with as the wind -- spy. clinton did that. pretty much her whole thing is in the vanguard 500. my theory is buffett told her to do it. buffett has advised reach out to buy the vanguard 500, don't touch it. joe: this is the best way to analyze. everything else is involuntary. caroline: we have to do more of this when it comes to political decisions. make sure to catch etf iq wednesday at 1:00 p.m. now time for the look at the stories treading. we're talking about russell clark. during each of the last three

doesn't reveal them fully in its present form because it remains confined to fringes too insular vanguard that exclude the vast majority of businesses and their workers and the consequence of this insularity is on the one hand slowdown in economic growth and growth of productivity. and on the other hand the aggravation of inequality now you know it it's most simplistic people are going to say to you you're using this phrase insula van god from insula people have got i phones and android phones this vanguard is being democratized that's not true that that's a common misunderstanding so one misunderstanding is to associate the knowledge economy only with the ants manufacture i tech industry in fact it is present in every part of the economy including intellectually dense services and even perception or scientific agriculture but in every part as a friend and the other misunderstanding is to suppose that anyone who buys the products and services of the knowledge economy becomes part of it that also isn't true the knowledge economy is not just a collection of gadgets and the use of these gadg

vanguard 60-40, balanced fund, ten year return, 11.07%. vanguard of real estate index, ten year return, 18.17%. average return of these three funds is 15%, the management for these funds are less than half of 1%. asked misconduct poker, if you average seven-point 4% return on your at high risk," cost, hi liquidity pension fund assets, and what you will pay in a management and performance fees in the next ten years, it should be enough to buy a san francisco office building for you all to do business in. thank you. >> first of all, i would like to welcome you to the board, hopefully you serve for the same dedication and confidence as wendy jordan who proceeded you, and also my concern about hedge funds. i don't believe they perform as well as the other securities do, and i think that there are other good investments that can be made that was pointed out by the previous speaker, so it is basically what hedge funds are doing, as they're having a growing incidence in the economy they take overseers, they take over hospitals, they take over so

came into force taiwan became the 1st place to legalize same sex marriage in asia placing it at the vanguard of the growing gay rights movement in the region it's a momentous day that many couples have been waiting a long time for. ok today i can candidly tell everyone in front of so many people that we have got married were homosexual i feel that we are so lucky to see. hundreds of couples have been seizing the 1st opportunity to tie the knot some 300 pairs are expected to register today. this registration office in the capital taipei was packed it's the culmination of a 3 decade fight for equality the weddings came a week after lawmakers voted to legalize gay marriage despite staunch conservative opposition the new law still contains restrictions not placed on heterosexual couples including that same sex couples can currently only adopt their partner's biological children but gay rights groups say they are willing to accept this partial equality in the hope of winning those remaining legal battles later for now they're celebrating a hard fought victory. the climate crisis is one of the big

another week, another round of fee cuts, this time from vanguard.ric: people thought the fee war was over, but this has been pretty intense. people will it on the -- people will you mail me and say, where will this go, what will happen to our industry? invesco has been doing a lot of acquiring, some people say consolidation. where will the industry be in 10 years? dan: with invesco's strategy, we have to offer all capabilities to clients, active, passive, alternatives. then we need to be able to deliver them, whether it is an etf, mutual fund, or managed account. in the current world, scale in things like etf's matter a lot. being able to understand that scale brings benefits to clients. you can have more investment in your systems to manage the assets better, reduce tracking error. generally deliver a better client experience. this has been the commitment of our senior management team, to find those assets that really enhance the experience ultimately for the client. as a global firm, source acquisition really helped us get to scale in europe. gugg

and the resistance is that the troops do not need a vanguard organizations to show what is wrong after tet. graduates may dominate the most popular and well-known narratives of combat experience, i do not think it is radically different from other backgrounds and men experienced in the war. >> do you think -- really wanted to provide opportunity for soldiers? one person said that it started out that way and they do really want to help and they do really need to -- it originated from a desire for that. it was a study done that looked at him part first committees and theyn different ways and 1964, i think it was one of the first times we said this is before the large-scale commitment in vietnam. the administration wanted to utilize and lower those standards to bring more people into give them the benefit of returning them to communities and of those communities by extension. militaryught off by leadership who said we have been in korea withre low iq soldiers appeared they were able to resist it at that point. by the time mcnamara amounts his knowledge0,000, to my he never said this is an

so broad but i would keep all your fees really well so use an investment group like fidelity or vanguard or td ameritrade that low cost products you don't go to your need to get your local investment guy. keep your cells and commissions low you don't need whole life insurance or variable life insurance, term life and then you invest the rest at the vanguard's td ameritrade's schwab's just the lower cost people. and then you don't need a 100 solutions if you put more. sunscreen on it doesn't make you healthier block more sign. it's put a lot of a lot of people start having 20 stocks and 40 stocks and 20 mutual funds too much is over cal and you can't watch your fees. i would start by watching that gets the best way to get a better return is lower your costs very good. thank you rob, if you've got a question for you know when you're at ross and you find.hmmm. ...at a price that has you, like... okay. that's yes for less. say yes to the latest spring trends at 20 to 60 percent off department store prices every day. at ross. yes for less. there's so much scent in new gain scent blast deterge

scarlet: shutting off taxes, how vanguard uses heartbeat treats to escape taxes. it mean for smaller issuers? the changing face of active. someone with oppenheimer funds. the final frontier, we explore the mission returns and

you will be the vanguard of freedom here they are the future of basters of freedom you look at their faces and frankly it doesn't seem they're in raptures over what mr pence is saying but let's hear where in the world we might expect to see a boost in freedom in the days to come some of you will join the fight against radical islamic terrorists in afghanistan. and iraq oh these are familiar places where the pro says so to say began a while ago soon it will be 20 years any more destinations some of you will join the fight in europe where an aggressive russia seeks to redraw international boundaries by force probably in this area it's a bit of an exaggeration that the graduates will find themselves on a battlefield taking part in nato zbig war games there that's more like it. i. i. well at least for now it's only been in the form of drills for now and finally the most curious part and some of you may even be called busy upon to serve. in this hemisphere it won't be rocket science for you. figure out where the boots on the ground money to be marching off to next in the western hemispher

and it's made life much better for women to what is on the vanguard of the it was difficult to find a safe place to go. there were men around so it was uncomfortable for me. i used to wait for them to leave so that i could deficit in the open. up. more people in india relieve themselves outdoors than in any other country that's because of the lack of toilets and sanitary facilities politicians have repeatedly promised to improve the situation but much still has to be done. public awareness is at least on the rise thanks also in part to bin dishwasher patek his ngo co financed a toilet museum in delhi here visitors learn for example that long ago things in india used to be better. people want to think twilit two thousand five hundred b.c. in india for power than five hundred years ago from to be people are going in opposite in two thousand and nineteen in india you know there are a whole many creative there are so many schools in villages that are not blighted. over the years been dishwasher patent has also constructed nine thousand public toilets across india. these are popular becaus

how vanguard uses heartbeat trades in etf's to escape taxes in mutual funds.ean for smaller issuers. the changing face of active. we speak with a representative of oppenheimer funds talking about active and has of debate. -- talking about active versus passive debate. the final frontier. we export the missions of ufo, a ne

how vanguard uses ftse trees in etf to escape in its usual fronts.ean for smaller issuers. the changing face of active. we speak with a representative of oppenheimer funds talking about active versus passive debate

the other side of the equation for mr salvini, of course, too, is he saw himself in the vanguard of an the right parties who could get a much stronger stage of the nationstate —— of course, nuala. he would have to be disappointed about how some of those other parties that would in his alliance have fared? there's a couple of things in. before these numbers came through he talked about potentially having another grouping, as our viewers have probably seen, people don't sit in the european parliament nationality by nationality, instead they group together by political leaning. he was hoping to form a new one. in the press conference i mentioned, he talked about nigel farage in the uk and marine le pen in france. really it looks like he won't be able to form that coalition and really there were questions from the get go about it. yes, they might wa nt to the get go about it. yes, they might want to be a europe of nations but they probably won't agree on emigration. they might like less to their country but if you have immigrants coming from north africa landing in lampedusa insist, will o

against their own interest when you're talking about tens of millions of americans who have money in vanguard fidelity teaches retirement and tens of millions americans who have were pensions now didn't bernie sanders and chuck schumer work on a bill to prevent stock buybacks yes but it's going nowhere because. mitch mcconnell is in wall street's pocket in more ways than one and up until recently you know they controlled the house of representatives i think the key bill that might start moving is by timmy baldwin senator from wisconsin and i think if you had a vote tonight i think over half the people would vote the right way in congress but they're not the most powerful people in congress they're not mitch mcconnell great ralph thank you so much for your time today thank you very much matthew best wishes to larry king and go to rats reform congress not over for your own power over congress and the future of our country and thank you for joining me on this edition of politicking also thanks to larry king for letting me sit in this chair today remember we love hearing from you join the convers

bank or vanguard and wells fargo you've worked as a financial analyst how big is the business of investing in incarceration and what effect does it have and why is it so critical that we stop it. super important so there's many many institutions many of the ones you just named all of which are household names that are invested in the prison industrial complex are financing construction bonds are equity investors in private prison companies or other services companies that service prisons and jails i'm not shocked while that in the communities that are affected by that. as you said i was a financial analysts are very familiar with sort of how a lot of these models are built how many of these tools these financing tools function in order to build and construct prisons around the country and so i think one of the interesting things that recently happened. that was actually exciting for advocates and activists all over the country was when j.p. morgan announced and wells fargo recently that they would no longer back private prison construction with their bonds it's important to take that sort