Without the success of Vanguard’s index funds, many say that the ETF industry would not be where it is today, report Alex Ulam and Olly Ludwig for Index Universe.
Bogle is known for his preoccupation with lowering the costs of investing and management of mutual funds, which started back when he was a student at Princeton University. His work eventually led to the creation of Vanguard, where fund shareholders are technically the owners of the company. [Education is Key for ETF Providers]
Despite the fact that 99% of ETFs are index products, Bogle has a distaste for them. [How to Use ETFs in a Trend Following Strategy]
He feels that the ability to trade ETFs during the day is their biggest flaw, which isn’t surprising given Bogle’s buy-and-hold philosophy.
Tisha Guerrero contributed to this article.