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Setting the record straight: The truths about index fund investing

Vanguard's August 2026 study estimates index fund investors have avoided roughly $570 billion in extra fees since 2000 thanks to lower expense ratios.

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Flows· 16 pages · PDF

What it says

Figures as stated by Vanguard, Aug 14, 2026
  • Vanguard puts the asset-weighted average expense ratio at 0.09% for index funds and 0.56% for active funds as of December 31, 2025.Vanguard, p. 4
  • Vanguard finds index funds made up 1.3% of total U.S. trading volume in 2025, up from about 0.3% in 2006, while active funds stayed between 2% and 5%.Vanguard, p. 9
  • Vanguard calculates that index funds held 23% of U.S. equity market capitalization at the end of 2025.Vanguard, p. 5
  • Vanguard says about 70% of Russell 3000 stocks typically finish a year 10 percentage points or more above or below the index, a rate unchanged as index ownership grew.Vanguard, p. 12
  • Vanguard reports that when volatility doubles, stock trading volume climbs by roughly 20% to 25% across the volume spectrum.Vanguard, p. 6

The ETFIQ take

ETFIQ data to Oct 20, 2026 · the 746 of 4,807 ETFs ETFIQ covers with a daily figure, Sep 21, 2026 to Oct 20, 2026

Vanguard reports roughly $570 billion in fees saved by index fund investors since 2000 through lower expense ratios. From Sep 21, 2026 to Oct 20, 2026, the ETFs ETFIQ can count had a net flow of +$127.9bn, with +$90.1bn for stock ETFs and +$35.7bn for bond ETFs.

+$127.9bnnet flow, Sep 21, 2026 to Oct 20, 2026, summed over the 746 of 4,807 ETFs ETFIQ covers with a daily figureOct 20, 2026 · ETFIQ →+$461.8bnnet flow, Jan 2, 2026 to Oct 20, 2026, summed over the 713 of 4,807 ETFs ETFIQ covers with a daily figureOct 20, 2026 · ETFIQ →+$90.1bnnet flow into stock ETFs, Sep 21, 2026 to Oct 20, 2026, over the 322 of 1,739 with a daily figureOct 20, 2026 · ETFIQ →+$35.7bnnet flow into bond ETFs, Sep 21, 2026 to Oct 20, 2026, over the 204 of 833 with a daily figureOct 20, 2026 · ETFIQ →
Paper: U.S. index and active funds, 2000 to 2025. ETFIQ: the 746 of 4,807 ETFs ETFIQ covers with a daily figure, Sep 21, 2026 to Oct 20, 2026. Net flow is the change in shares outstanding times the day’s NAV, summed over the days in the window, for the funds with a daily figure. The two sets and windows differ; the figures are stated, not reconciled.MethodData

Related ETFs

The funds the paper names that ETFIQ covers
VOOVanguard S&P 500 ETF+16.5%

Figure: total return, 1 year, to Oct 21, 2026, from each fund’s page. All 4,807 ETFs in the screener →

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All 16 papers on flows →

Questions people ask

What does the Vanguard paper conclude?

Vanguard's August 2026 study estimates index fund investors have avoided roughly $570 billion in extra fees since 2000 thanks to lower expense ratios. The paper’s own words are at the link above.

What does ETFIQ’s data show on the same question?

From Sep 21, 2026 to Oct 20, 2026, the ETFs ETFIQ can count had a net flow of +$127.9bn, with +$90.1bn for stock ETFs and +$35.7bn for bond ETFs. ETFIQ states both figures and does not reconcile them.

What is an ETF’s net flow?

The change in its shares outstanding times its net asset value, summed over the days of a window: money in less money out. More on this →

Where can I read “Setting the record straight: The truths about index fund investing”?

On Vanguard’s own site. ETFIQ summarizes the paper and does not host it. Vanguard’s page ↗
Cite this pageCitation, APA and Markdown

ETFIQ, Setting the record straight: The truths about index fund investing (Vanguard), summary and ETFIQ take, as of Oct 21, 2026. https://etfiq.com/research/library/vanguard-setting-the-record-straight-the-truths-about-index-fund/

Open data →

Summary by ETFIQ. ETFIQ is not affiliated with Vanguard; logos identify the source.