Vanguard says social concerns will not affect gunmaker holdings

Tue Dec 18, 2012 2:58pm EST

Dec 18 (Reuters) - Money manager Vanguard Group Inc, the largest owner of gunmaker Smith & Wesson Holding Corp, said on Tuesday it cannot operate its big index funds to meet what it called the "social concerns" of all shareholders.

Vanguard of Pennsylvania said in a statement it is "deeply saddened by the tragedy in Connecticut" but said most of its shares in Smith & Wesson and rival Sturm Ruger & Co are held in index funds that are required to track their indexes.