In August, I highlighted that Vanguard registered seven new bond index funds (Vanguard's New Funds -- Not For You). These bond funds, offered in Signal and Institutional Shares (available in financial advisor accounts, retirement plans, corporate accounts, etc.), with minimum investments of $5 million and $1 million respectively, are also available in the ETF structure. So what's the problem? Well, strangely, the investor share class is missing from the mix.

Vanguard defines the investor share class as:  "Traditional shares for individual investors. Investor Shares typically feature low minimum initial investments."

So, why is Vanguard not introducing the new bond funds in the Investor Share Class -- allowing more do-it-yourselfers to invest in the funds? Initially, I thought Vanguard was making a statement about the use of mutual funds and ETFs for the individual investor. But I was wrong, according to the public relations folks at Vanguard.

Josh Grandy, with Vanguard's public relations department, was kind enough to answer my questions when I called the firm. Apparently, Vanguard's reasoning for excluding the Investor Shares is that they believe the bond funds will be of more interest to advisors and institutions and hence the reasoning for offering the share classes that are being offered.

Josh also pointed out that individual investors can invest in the new bond funds through the ETF structure. For an important caveat of the ETF structure (particularly when it comes to bond funds), see Vanguard's press release.

It seems like yesterday that Y2K was making the headlines. Now the roaring 2000s (that one is for Harry Dent) are coming to a close.

We will soon start seeing a deluge of "mutual funds of the decade" accolades and "portfolio managers of the decade" awards.  Morningstar is already out with "The Fund Manager of the Decade Finalists."

Does it mean you should buy these top funds of the last decade? Well, I'm not sure what Morningstar is telling you, but the research indicates that investors shouldn't buy last year's, or last decade's, top performing funds.

Mutual fund investors know that if they make money, they pay taxes. Unfortunately, mutual fund investors are also faced with a potential tax liability whether they make money or not.

In my latest article about cap gains distributions, I have posted a few helpful links about these "phantom gains" that are known as capital gains distributions. I have also linked to select mutual fund companies that have listed expected capital gains distribution estimates.

Fortunately, 2009 won't be a very taxing year for many mutual fund investors (in terms of distributions, that is).

You asked for it. You got it. The ETF vs. mutual funds debate from all angles. Only this time you get the facts from the ETF Guide and the Mutual Fund Guide (that's me).

I couldn't say it better myself, so here's what the ETF Guide writes on his blog, "Mark Kennedy meet Lee McGowan. ETF Guide meet Mutual Fund Guide. Lee and I collaborated on our latest article comparing ETFs to mutual funds. The new piece gives you the story from both sides. Is an ETF better than a mutual fund or is a mutual fund better than an ETF? We both have our opinions, as you will see."

Mark goes on to say, "But wait, there's more! We also give you the inside scope on the tax implications of each product, the benefits, the risks, the whole enchilada. So without further ado..."

Is An ETF Better Than a Mutual Fund?