With so many stories out there talking about the benefits of index funds vs. managed funds, it is hard to separate the wheat from the chaff.  But is one type of fund better than the other or can they coexist?

"We have been zealots of indexing," said Rodney Comegys, principal in Vanguard's equity investment group. "They are a low cost way to get returns."

That said, Vanguard has a "lot of great active funds we utilize for our investors. Active and passive can coexist, but indexing is a great way to get returns these days."

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