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Vanguard Put Gun Stocks in a Gun-Free Fund After Index Error

Aug.14 -- Vanguard Group Inc.’s biggest sustainable exchange-traded fund bought shares of gun maker Sturm Ruger & Co. Inc. and held them for more than a month, mimicking an error in the benchmark it tracks. Vanguard US ESG Stock ETF says it tracks an index that doesn’t include weapons manufacturers, along with other companies that socially responsible investors prefer to avoid. Though the Sturm Ruger buy was temporary and small -- 219 shares worth about $9,000 -- it raises questions. Bloomberg's Scarlet Fu, Emily Chasan and Shaheen Contractor discuss the issue and Vanguard's response.