Vanguard reportedly considering private equity products

Vanguard Group, the index fund behemoth, is considering private equity offerings and has held meetings with several firms, The Wall Street Journal reported Sunday.

The Malvern, Pa.-money manager that rose to fame by offering broad, low-cost stock-and-bond market funds, hasn’t made a final decision on whether to offer access to private equity-related products, which could carry higher fees, the Journal said, citing sources. It said Vanguard has had “exploratory” talks with Boston’s HarbourVest Partners, London-based Pantheon and at least one other firm over the past year.

Vanguard Group did not immediately respond to a request for comment.

The firm had about $5.2 trillion in assets as of the end of January.

Such a move would come as asset managers are facing increasing cost pressure for their public-market funds. A report published by J.P. Morgan Chase last month said that exchange-traded fund fees by large firms like Vanguard and Blackrock have dropped by 40% the past eight years.