Despite founder John Bogle’s outspoken reservations against the exchange traded fund product, Vanguard has become the third largest ETF provider.
John Bogle, founder and retired CEO of The Vanguard Group, created his company based on serving low-cost index funds that would beat active funds. [Why Vanguard Founder Doesn’t Like ETFs]
“Bogle is the father of indexing,” Paul Volcker, the head of the Fed from 1979 to 1987, said at a ceremony honoring Bogle at the Museum of American Finance. “It is a very strong concept in the market, and deservedly so.”
As a result of the company’s fund structure, Vanguard’s mutual funds and ETFs are some of the cheapest on the market. For instance, the Vanguard S&P 500 ETF (NYSEArca: VOO) has an expense ratio of just 0.06%.