Fund sponsors seek the highest returns for the investor, yet also desire to turn the highest possible profit for themselves, a Reuters columnist attests. The expense ratio of the average mutual fund recently stood at 1.36%, nearly 50% higher than in the late 1970s, Reuters quotes John Bogle, Vanguard founder, as saying.

But VanguardÂ’s annual expense ratio is only 26 basis points, primarily due to the fact that Vanguard is owned by shareholders, whose main goal is to maximize their own returns.

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