[kspaans]

But isn't one of the points of Vanguard that their investment management is cheaper by its very nature? Namely: passive, index-tracking funds are simpler and cheaper to manage than active ones?

I can see that they could have run afoul of some tax rules due to their structure, but it seems disingenuous to argue that they should charge management fees just as high as their active management competitors. (But sure, maybe they should charge more than they do now.)

Then again, as an owner of Vanguard index funds, maybe it's hard for me to be rational in this case. >:D