Markets

Fundamental indexing's 'value tilt'

Gus Sauter, chief investment officer at Vanguard, on why fundamental indexing is unlikely to catch on at Vanguard. He says the newly popular fundamental index approach, rather than using the more traditional cap-weighted indices, implies active investment which in turn would imply higher costs. He says investors should try to ignore market swings and instead set a long term strategy and stick to it.