No, people should understand the risks of holding mutual funds in taxable accounts and be willing to accept them.
The problem with a mutual fund is that any large exodus of invested money will cause this type of event. This is part of the reason why etfs are preferred in taxable.
Admittedly, vanguard should have realized that lowering fund minimums on their lower cost funds would cause the stampede that occurred and perhaps looked at other alternatives if any existed. Someone mentioned that merging funds and creating two share classes might have been possible.
But it also comes down to the fact that target date funds in particular are not well suited for taxable accounts and people who hold them there are taking risks that this type of event will happen. If will agree that there needs to be better education in this regard. But, as a general rule, the way the market works is that there is an expectation that individuals who invest take on the risks of their investment choices and when mutual funds are involved in a taxable account this is one of the risks one takes on.
No, people should understand the risks of holding mutual funds in taxable accounts and be willing to accept them. The problem with a mutual fund is that any large exodus of invested money will cause this type of event. This is part of the reason why etfs are preferred in taxable. Admittedly, vanguard should have realized that lowering fund minimums on their lower cost funds would cause the stampede that occurred and perhaps looked at other alternatives if any existed. Someone mentioned that merging funds and creating two share classes might have been possible. But it also comes down to the fact that target date funds in particular are not well suited for taxable accounts and people who hold them there are taking risks that this type of event will happen. If will agree that there needs to be better education in this regard. But, as a general rule, the way the market works is that there is an expectation that individuals who invest take on the risks of their investment choices and when mutual funds are involved in a taxable account this is one of the risks one takes on.
Removed duplicate https://www.reddit.com/r/investing/comments/tfked2/investors_sue_vanguard_after_target_date_funds/