Two industry heavyweights spoke at Nisca’s 25th Annual Conference and Expo, mentioning exchange traded funds (ETFs) in their debate. Jack Bogle spoke of his dream for fund investors and Paul Haaga took aim at several myths concerning active investing. Haaga, vice chairman of Capital Research and Management Company advocated actively managed funds while emphasizing their ability to beat S&P returns. He wanted to dispel industry "myths" such as: index funds always beat active managers; mutual fund costs are rising; mutual fund shareholders don’t do as well as the funds do. His last "myth" was that ETFs are competing for mutual fund industry dollars.
Bogle has his own ideas for redesigning the mutual fund industry. Some of his dreams are: for cost to come down for investors; investment managers serve clients for life; cradle-to-the-grave retirement security; long-term investing as a mind-set; return to the roots of diversification; shareholders in the drivers seat of fund governance. Ultimately, Bogle thinks the industry is at an asset-gathering mentality.
Lisa Lacy of Ignites reported one of Bogle’s statements as "The public wants exciting and new versus tried and true." Could this be ETFs he is talking about?
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.