alt Hacker NewsI mean even $100 annually compounds to be tens of thousands over a lifetime. Furthermore, Vanguard manages like almost 10 trillion so that ends up being nearly a billion extra extracted per year.
My main issue though is that Vanguard's brand is low-risk passive, but they are now selling high-risk active funds under that brand.
Replies
UncleMeat • today at 12:27 PM
Vanguard's brand is "retirement management company." If you were to ask the vast majority of people with their retirement accounts managed by Vanguard who Jack Bogle was very few would be able to answer.
Quibbling over one basis point in fees just doesn't feel valuable. Tracking error will be larger than this.
You aren't wrong that Vanguard seems more active friendly these days.
But Vanguard under Bogle always played both sides of the fence at least to some extent. They have always had that actively managed Windsor fund, right? And Wellington?
I think your article headline shows you have a fair bit more to learn about Bogle. Or at least you haven't made your case on that front. Bogle was at least as much about low cost and aligning interests of the investment client as he was about passive indexing, though he is known more for the latter.
Here's a writeup with a couple pointers to more on the topic from Bogle: https://www.bogleheads.org/forum/viewtopic.php?t=388377