Excellent post. These are their options.I have a different take...

Excellent post. These are their options.

I have a different take on your last comment. Are these funds manager short a sandwich at their picnic?

My take:

These Index Tracking funds are all forced to buy in or out based, some leeway/timing, on stocks based on the composition - ie all ords.

Their performance is ranked RELATIVE to other index tracking funds. mmmmm what does that imply

Vanguard Buy, Loans, ShOrTeRs ApPeAr (all with their own style) to distort, ADN drops out of the index, shares are handed back with a big loss, and dumped on the market.

Pretty Dumb ha... Big Fat Loss... Hey but thats ok because everyone lost....

Their performance is linked to similar Index Tracking Funds; and these other funds will now suffer the exact (similar) loss.

As long as they track that index, make some money, they get their bonusses. Its a hard job ha.....

NOw here is a curly.... Vanguard may do better than others, as they tracked the index, but received loan interest all year. Those who did NOT loan their shares are down the same, but have nothing to show :-(

And this is why Vanguard has an extra baloney sandwich at the picnic. They tracked the index just like all others, but they claimed interest along the way.

This is why I hate index tracking funds, I'd much rather stick funds into the LICs that do research and choose 20,30 stocks to hold

What will Vanguard do now? Who knows - I liked your post