Vanguard Index Fund Challenges Magellan

Vanguard Group’s flagship mutual fund, which mimics the Standard & Poor’s 500 index, crossed the $90-billion mark in assets and moved closer to becoming America’s biggest mutual fund.

Vanguard Index 500 Fund had $92.7 billion in assets under management at the close of business Wednesday, said John Woerth, a company spokesman. Fidelity Investments’ Magellan Fund, managed by Bob Stansky, had $97.6 billion.

“The growth of the Vanguard fund is a testament to the increasing popularity of index funds and the marketing prowess of the company’s founder, Jack Bogle,” said Stephen Janachowski, a financial advisor in Tiburon, Calif..