Vanguard, IIT, Founder discussed on Bloomberg View


The story there is no doubt that they carved out the we are going to be the low cost provider anywhere we go and that's a big part of what they do but it's only apart and it wouldn't work without all these other things and aspects to vanguards philosophy we talk about vanguard as this mammoth company help us understand the scale of it how big is van garden and what does it do vanguard is coming up on four point eight trillion dollars they'll be five trillion dollars there are fifteen companies that are more than a trillion dollars the only company that any larger than than guard is black rock and a big chunk of of black rocks advantages they put out the first unit investment trust leader we started calling these things etfs that were the spyders the sp 500 plus a thousand variations the value spiders the the gross fighters the deserved a ton of different versions of it and and that's probably a trillion plus advantage for for black rock but these are the two behemoths in the space black rock is publicly traded vanguard is a mutual meaning it's actually owned by the holders of its funds something you put on your pieces despite its size vanguard has not been widely studied why is that the case in and what have you learned about it looking into the way it works so keep in mind when when vanguard first launched they said we we think people should have the ability to index inexpensively iit was called an american people termed bowls folly in reference of jack bogle the founder and driving force behind vanguard for the past four decades so a number of things are built into their dna first they put the clients first that's a novel leak when now if you're registered investment adviser or a lawyer and accountant or what have you anybody who has a fiduciary obligation will then of course you put your clients first but that's not the way the brokerage industry works or any number of aspects especially with publicly traded companies if you probably traded you do have a fiduciary obligation but it's two year shareholders to your owners your clients or just that client so it's a very different philosophy it's a very different of proton to interacting with investors.

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