In what seems to be an about-face, wirehouses are embracing fixed indexed annuities, which offer investors a guaranteed-minimum return and the opportunity to partake in stock market gains.
Private-equity firms are raising their profile in the indexed-annuity market, worrying some observers who fear that they are taking greater risks in increasing market share.
Equity-indexed annuities are complex investments sold by insurance companies that pay investors part of the capital appreciation in a stock index and guarantee a minimum return if the contract is held to maturity.
Vanguard has preserved a reputation as the lowest-cost provider of investment options since John Bogle founded the company in 1974, operating on an at-cost basis in a world motivated by profit.