[SpicyLemonZest]

Why should we presume that? It seems equally likely that the fees would have to be higher if not supported by profitable cross-sales.

[benjaminklick]

It's high risk. Sure, if active funds succeed. But active funds fail more often than they succeed.

[ta9000]

That’s a risk that Vanguard investors in active funds are willing to take. They’re not stupid, investors at Vanguard know that passive is their primary focus. Also the fees for their active funds are lower than average so they have a higher likelihood of success since a lot of the drag on active performance is… high fees.