Impact of John Bogle and Vanguard on ETFs

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The chapter explores the significant influence of John Bogle and Vanguard on the financial industry through the innovation of ETFs. It emphasizes the appeal of ETFs to a younger audience, their role in portfolio diversification, and the unique ownership structure of Vanguard that prioritizes investor interests over profits.

Clay Finck chats with Eric Balchunas about what an ETF is and why it’s a popular investment tool among retail investors, how Vangaurd was originally created after Bogle was ousted out of his own company, why Vanguard’s business model was so successful at attracting new investors, Eric’s thoughts on a potential index fund bubble, how Vanguard is disrupting the financial services industry, Eric’s thoughts around the effects of a Bitcoin ETF in the future, and much more!

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:29 - What an ETF is and why it’s a popular investment tool among retail investors.

08:20 - How investors can parce through the thousands of ETFs available to determine which make most sense to them.

12:40 - How Vanguard was originally created after Bogle was ousted out of his own company.

19:09 - Why Vanguard’s business model was so successful at attracting new investors.

19:09 - Why other companies haven’t followed the Vanguard playbook.

31:20 - What drove Bogle to pass on almost all profits to investors through Vanguard.

37:10 - Eric’s thoughts on a potential index fund bubble.

42:07 - How Vanguard is disrupting the financial services industry.

52:35 - Eric’s thoughts around the potential Bitcoin ETF.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Check out Eric’s book, The Bogle Effect.
Check out Bloomberg’s podcast, Trillions.
Bloomberg’s show, Bloomberg ETF IQ.
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