At the end of September, investors in
The move is intended to reduce transaction costs for shareholders and make the funds more manageable by reducing frequent trading. It will also strengthen "existing safeguards that help protect our mutual-fund shareholders from the potentially harmful effects of frequent trading and market-timing," the company said on its Web site.
Several funds are exempt from the new rule, including money market funds, short-term bond funds, and the VIPER exchange-traded funds. Furthermore, the policy will not apply to asset transfers and rollovers, check-writing redemptions, transactions by mail and some automatic transactions.
Vanguard notified shareholders of the change in a June 30 account statement.
Roy Weitz, who publishes
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