Bogle was also inspired by Paul Samuelson, an economist who later won the Nobel Memorial Prize in Economic Sciences, who wrote in an August 1976 column in Newsweek that retail investors needed an opportunity to invest in stock market indexes such as the S&P 500. Bogle saw this as an opportunity to start a passive fund tied to the performance of the S&P 500, which was established in 1957. The Wellington executives prohibited the fund from engaging in advisory or fund management services. Wellington executives initially resisted the name, but narrowly approved it after Bogle mentioned that Vanguard funds would be listed alphabetically next to Wellington Funds. Bogle chose this name after a dealer in antique prints left him a book about Great Britain's naval achievements that featured HMS Vanguard. He named it Vanguard, after Horatio Nelson's flagship at the Battle of the Nile, HMS Vanguard.
And if I had not been fired then, there would not have been a Vanguard." īogle arranged to start a new fund division at Wellington. Bogle has said about being fired: "The great thing about that mistake, which was shameful and inexcusable and a reflection of immaturity and confidence beyond what the facts justified, was that I learned a lot. However, the merger ended badly and Bogle was therefore fired in 1974. He became president in 1967 and CEO in 1970. In 1966, he forged a merger with a fund management group based in Boston. Immediately after graduating from Princeton University in 1951, Bogle was hired by Wellington Management Company. Even if the stocks in the funds beat the benchmark index, management fees reduced the returns to investors below the returns of the benchmark. Bogle conducted a study in which he found that most mutual funds did not earn more money compared to broad stock market indexes. In 1951, for his undergraduate thesis at Princeton University, John C. The company also has offices in Canada, Australia, Asia, and Europe. It has satellite offices in Charlotte, North Carolina, Dallas, Texas, Washington D.C. Vanguard's corporate headquarters is in Malvern, a suburb of Philadelphia. Admiral shares have slightly lower expense ratios but require a higher minimum investment, often between $3,000 and $100,000 per fund.
Vanguard offers two classes of most of its funds: investor shares and admiral shares. Vanguard is owned by the funds managed by the company and is therefore owned by its customers.
Bogle is credited with the creation of the first index fund available to individual investors and was a proponent and major enabler of low-cost investing by individuals, though Rex Sinquefield has also been credited with the first index fund open to the public a few years before Bogle. Along with BlackRock and State Street, Vanguard is considered one of the Big Three index fund managers that dominate corporate America. Several mutual funds managed by Vanguard are ranked at the top of the list of US mutual funds by assets under management. In addition to mutual funds and ETFs, Vanguard offers brokerage services, variable and fixed annuities, educational account services, financial planning, asset management, and trust services. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares. is an American registered investment advisor based in Malvern, Pennsylvania, with about $7 trillion in global assets under management, as of January 13, 2021.