Hints and tips:
...BlackRock’s lead in the US exchange traded fund market is being eroded by Vanguard and smaller rivals as firms jockey for a larger slice of the $8tn industry....
...In economic terms, the “misery index” is defined as the sum of inflation and unemployment....
...At the end of 2021, Vanguard, BlackRock and State Street, the three biggest index fund providers, together control on average 18.7 per cent of S&P 500 companies, according to Lazard....
...The University of Michigan will publish the final reading of its consumer sentiment index for November....
...for as much as 40 per cent....
...Sure, it is embarrassing that a blue-chip such as Schroders did not make the grade while an index-fund giant like Vanguard and smaller peers did, especially as active fund fees have defied gravity even as...
...The fiscal outlays alone are comparable as a percentage of GDP to the outlays for WW2. Added to that is the fact that the real fed funds rate in Q3 21 was -4 per cent. And there has been QE as well....
...Al Gore unloads on index funds “Do they want to continue to finance the destruction of human civilisation, or not?”...
...Even Jack Bogle, founder of Vanguard and pioneer of the modern US index fund industry, is alarmed by their success....
...The so-called big three indexed fund providers — Vanguard, State Street and BlackRock — are estimated to have controlled about 15 per cent of the S&P 500 in 2017....
...Some say index funds are lazy owners, leading to unaccountable management and ultimately sapping the economy of its dynamism....
...Vanguard founder Jack Bogle dies at 89 John ‘Jack’ Bogle, founder of Vanguard and creator of the world’s first index mutual fund, has died at the age of 89....
...As such, limiting a fund’s ability to invest in all of the constituent companies in its benchmark index could introduce deviation (that is, tracking error) between the fund’s performance and that of its...
...john.authers@ft.com...
...In the US, more than a third of stock funds’ assets are passive, while index funds dominate flows of new money into the market....
...US asset managers such as iShares and Vanguard, the two largest issuers, have traditionally offered “physical” ETFs — funds backed by the underlying securities that make up the index....
...“I think they’re almost an index fund owner, a holder in perpetuity,” he says....
...Two-thirds of Vanguard’s assets are held in passive funds, which have to hold all the companies in its benchmark index....
...John nailed the crux of the matter facing active managers: “On average, active funds will roughly match the index before fees; that means that after fees, most of them will lose to the index.”...
...As the biggest managers of index funds, they often cumulatively own 12 per cent and as much as 20 per cent, of nearly every public company, according to the Pershing letter....
...For passive, read active Passive fund managers are not passive owners. This is the message from Vanguard, one of the world’s biggest managers of passive or index funds, writes David Oakley....
...The cost structure is the same as active management. The cost of the index funds becomes exactly the same as the active funds,” he adds....
...Nomura, as part of an excellent report looking at various aspects of active versus passive investment management, have considered Warren Buffett’s famous bet that an index fund will beat a fund of hedge...
...The mutual fund industry should be in the vanguard of this movement. John C. Bogle is founder of US fund manager Vanguard and author of The Clash of the Cultures: Investment vs. Speculation...
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