The Intrinsic Value Podcast - The Investor’s Podcast Network

MI Rewind: The Bogle Effect w/ Eric Balchunas

Jun 14, 2024

Eric Balchunas discusses the rise of ETFs, Vanguard's disruptive business model, the potential for a Bitcoin ETF, and the impact of index fund bubbles. He highlights Vanguard's success in attracting investors and prioritizing their interests, while exploring the innovation and trends in the ETF space.

59:06

Episode guests

Eric Balchunas

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

ETFs revolutionize retail investing with low fees and diversified options.

Vanguard's success lies in offering low-cost index funds and prioritizing investor trust.

Index funds, like ETFs, provide cost-effective and flexible investment options, reshaping the financial industry.

Deep dives

Importance of Index Funds in Retail Investing

Index funds, particularly ETFs, have revolutionized retail investing by offering diversified investment options with low fees. Vanguard's success in attracting new investors stems from its pioneering role in providing low-cost index funds. The shift from active management to passive indexing has allowed everyday investors to benefit from diversification and reduced volatility in the market.

Intro

3min

Impact of John Bogle and Vanguard on ETFs

17min

Innovations in Range Rover Sport and Airbnb's Potential

6min

Vanguard's Impact on the Investment Industry

16min

Three Sponsor Messages: Airbnb, Land Rover USA, NetSuite by Oracle

3min

Vanguard Expansion and the Rise of Bitcoin ETFs

13min

Exploring Trends and Innovation in the ETF Space

4min

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

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Eric’s book, The Bogle Effect.
Check out Bloomberg’s podcast, Trillions.
Bloomberg’s show, Bloomberg ETF IQ.
Check out the books mentioned in the podcast here.
Enjoy ad-free episodes when you subscribe to our Premium Feed.

NEW TO THE SHOW?

Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
Check out our Millennial Investing Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.