Vanguard defends the value of active bond funds
The Vanguard Group headquarters are seen in Malvern, Pennsylvania on Friday, September 4, 2003. Vanguard Group, the second-largest U.S. mutual fund company, received a subpoena from New York Attorney General Eliot Spitzer as part of an inquiry into illegal trading practices in the $6.9 trillion industry. Photographer: Mike Mergen/ Bloomberg News
When it comes to fixed income, active management helps investors avoid the inherent biases of bond indexes.
Quick — what's the first word you associate with Vanguard Group Inc., the $5.1 trillion investing giant? Perhaps it's "indexing" or "passive," referring to some of the asset manager's largest fund offerings, such as its $577 billion Vanguard Total Stock Market Index Fund or the $154 billion Vangua
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