Employees at investment giant Vanguard Group will no longer have access to an S&P 500 index fund SPX, +0.42% as a choice in its 401(k) retirement plan, according to a report in the Philadelphia Inquirer.
The company, which popularized low-cost index investing, will remove the option to invest in the Vanguard Institutional Index Fund VINIX, +0.08% for employees this month and the money currently in those funds will be put into target-date retirement funds based on the worker’s age, the report said.
The move part of a larger strategy to streamline fund options for employees, the report said, citing the company. A company spokesman told the Inquirer that Vanguard eliminated 12 funds from its retirement-plan menu. The list of the dozen funds published by the Inquirer comprises a mix of actively managed and passive index funds.
A Vanguard representative was not immediately available to provide more details.