Index Funds Are King, But Some Indexers Are Passive-Aggressive
ByInstead of picking stocks to beat the market, they’re picking sectors, styles, and parts of the world.
Vanguard Group founder John C. Bogle in 2014. PHOTOGRAPH: PETER FOLEY/BLOOMBERG
Vanguard Group founder Jack Bogle, who died on Jan. 16 at age 89, ushered in an era of low-cost investing for the many. He launched the first index mutual fund for individual investors at the end of 1975 for the purpose of passive investing: Skip the stockpicking, save on fees, and simply ride the ups and downs of the overall market. His fringe idea has become mainstream. Sometime this year, analysts at Morningstar Inc. say, assets in passively managed U.S. equity funds are likely to surpass assets in actively managed ones. By pushing down fees across the industry, Bogle may have saved American investors $1 trillion over his lifetime, calculates Bloomberg Intelligence analyst Eric Balchunas…
Index Funds Are King, But Some Indexers Are Passive-Aggressive
