Bogle Rains on Parade of "New" Index Funds

Former Vanguard CEO John Bogle, understandably viewed as a guru on index mutual funds, has criticized the most recent wave of index funds. Bogle argued that the desire for higher fees has caused mutual fund managers to create hybrids of managed and index funds which emphasize past performance. The problem, Bogle says, is that the strategies employed in these new "index" funds were short-to-mid-term strategies that will not work indefinitely.

Bogle has forgotten more about mutual funds than I have ever known. Buy into the "new index" funds at your peril.