World’s Largest Mutual-Fund Firm Wants Some Europe Action
- Company says strategy’s market share could double to 30%
- Active funds lose out as regulators ramp up pressure on costs
Vanguard, BlackRock Lead Rise of Passive Ownership
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Vanguard Group Inc. smells an opportunity. The world’s largest mutual-fund company is betting the passive-investment model it pioneered in the U.S. is about to seize more of a foothold in Europe, and it’s lining up for a piece of the action.
Forthcoming regulations such as MiFID II will probably increase the cost of managing money in the region, likely benefiting investments that track indexes to the detriment of active products where managers are paid to pick stocks and bonds.