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The passive vs active asset management quarrel

” Vanguard’s ability to achieve extremely low costs can be traced back to the way founder John Bogle formed the company in 1975. He set it up as a “mutual ownership structure,” which basically means the shareholders are the fund investors. So while Vanguard does make profits, those profits don’t go to shareholders, they go back to investors by lowering fees. The foundation on which Vanguard is built is what makes it so different and ultimately gives the company its edge. ”

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Quote and photo:

Vanguard’s Gain Is Wall Street’s Pain as Billions Leave the Financial Industry

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