Reported 3 months ago
Vanguard has issued a warning to investors about the possibility of U.S. regulators imposing restrictions on its ownership stakes in certain sectors, which could lead to increased costs and risks for index funds. The firm filed disclosures with the SEC to highlight potential regulatory changes affecting ownership caps for banks and utilities. While the SEC has historically permitted larger stakes under certain conditions, discussions for stricter rules have emerged, raising concerns about the implications for fund performance and investor taxation.
Source: YAHOO