They are different. Vanguard is paying to outsource functions like distributing prospectii, generating 1099’s etc. while some fund companies also pay a sales commission and/or other marketing costs.Sure but I doubt that anyone has interpreted that to mean the same thing as what Vanguard said in that article, which is:More important than what you can discern from fees is that the Statutory Prospectus states (as all Vanguard prospectuses have for decades): "The Fund and its advisor do not pay financial intermediaries for sales of Fund shares." Intermediaries are defined as banks and brokerages, among others.
“We still do not pay distribution fees that incentivize sales of our funds on third-party platforms,” says a Vanguard spokeswoman, in an email exchange.
Vanguard also “does not make payments for preferential placement or treatment of its products, [but it] may make payments to financial service providers for things like events, data, and other services,” she adds.
IOW, oh we're not paying for sales, we're only paying to be on the shelf. OK then, so why exactly do you want to be on the shelf? Or to use Vanguard's specific wording: why are you paying financial service providers for things like events, data, and other services?
Statistics: Posted by Northern Flicker — Wed May 13, 2026 2:52 am — Replies 232 — Views 39384
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