Vanguard Patent That Helped Clients Pocket Big Gains Expires (1)

The patent that’s given Vanguard Group an edge over competitors for the past 20 years — and helped its clients pull in more than $100 billion worth of additional investment gains — expired today.

Rival fund managers are now free to replicate a unique but controversial fund structure created by the Jack Bogle-founded firm in 2001 that allows mutual funds to act like exchange-traded funds by generating returns for investors while minimizing taxes.

It’s unclear if the expiration marks a minor footnote in history or a pivotal moment for fund managers looking for a fresh edge in an increasingly ...