Index Funds Take the Lead (11/13)

Vanguard’s Total Stock Market index fund is now the world’s largest mutual fund. At ETF PM, we use Vanguard’s VTI in our investable benchmarks.

Gross Loses World’s Largest Mutual Fund Title to Vanguard 

By Charles Stein, 11/4/13

Bill Gross no longer runs the world’s largest mutual fund.

Gross’s Pimco Total Return Fund (PTTRX) has shrunk by $37.5 billion since the start of this year, ending last month with $247.9 billion in assets, according to data provided by Pacific Investment Management Co. in Newport Beach, California, and compiled by Bloomberg. The Vanguard Total Stock Market Index Fund (VTSMX) ended October with $251 billion, Vanguard Group Inc. spokesman John Woerth wrote in an e-mail, taking the top spot.

Investors are pulling money out of traditional fixed-income funds in anticipation that the three-decade rally in bonds is ending, and adding to stock funds, particularly low-cost index funds, as the bull market in U.S. equities is in its fifth year. Pimco Total Return, which became the biggest mutual fund in 2008, is on track to have the worst redemptions ever this year, losing $4.4 billion in October and $33.2 billion in 2013, according to estimates from Morningstar Inc. (MORN)

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