The use of low-cost index funds in Vanguard 401(k) plans doubled from 2004 to 2012.
According to Vanguard's "Behavioral Effects and Indexing in DC Participant Accounts 2004-2012," the average participant now invests 60 percent of his account balance in index funds, compared to 30 percent in 2004, in large part because of the growing popularity of index-based target-date funds.
The study also found that the assets in actively managed funds and non-indexable assets, such as money market funds, stable value funds and company stock, declined significantly over the eight-year period, dropping from 32 percent in 2004 to 19 percent in 2012.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
