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:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 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.
