Jack Bogle's Indexing Revolution
In our latest Masters in Business podcast, we speak with Jack Bogle, founder of the $3.5 trillion Vanguard Group and creator of the index mutual fund.
Bogle started Vanguard in 1974 after being ousted as chairman of Wellington Funds following a failed merger. Bogle's indexing idea may seem like conventional wisdom today, but at the time it was revolutionary -- that a fund passively matching the broad market's returns would outperform almost all funds actively managed by stock pickers. Bogle said that Wall Street’s initial response to index funds was to ignore them, which explains why for many years Vanguard had no or little competition.
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
To contact the author of this story:
Barry Ritholtz at firstname.lastname@example.org
To contact the editor responsible for this story:
James Greiff at email@example.com