Investors are always looking for an edge, but a newsletter used by a group of Southwest Airlines pilots to make trades in its 401(k) accounts isn't sitting well with Vanguard.
The fund provider sent a letter to the monthly publication, 401(k) Maximizer, to complain about trades made by pilots – transactions that Vanguard said endangered the investments of about 7,000 other shareholders in the $2.6 billion plan.
The letter from Vanguard, first reported by Reuters, asked 401(k) Maximizer to cease writing about three of its funds that had been the subject of trades that totaled as much as $45 million following publication of the various editions of the newsletter. The Vanguard funds were the S&P 500 Index, Small-Cap Growth Index and the Inflation Protected Securities Index.
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