The Vanguard ownership and revenue structure is very weird and the subject of multiple IRS and SEC private rulings. It’s not a mutualized organization like a mutual insurance company.
Each mutual fund is a separate corporation and contracts with a management company. This is standard across the industry. The Vanguard “twist” is that all Vanguard funds contract with the same central management company. Each fund also owns a share of this company. The management company charges the funds for its services at cost. This has been the subject of at least one lawsuit, alleging that Vanguard is engaging in anti-competitive behavior by not charging funds for management services at an arms length level.
Each mutual fund is a separate corporation and contracts with a management company. This is standard across the industry. The Vanguard “twist” is that all Vanguard funds contract with the same central management company. Each fund also owns a share of this company. The management company charges the funds for its services at cost. This has been the subject of at least one lawsuit, alleging that Vanguard is engaging in anti-competitive behavior by not charging funds for management services at an arms length level.