Nevertheless, Bogle remains a staunch opponent of ETFs, even though 99% of all ETFs are indexed products. Specifically, he believes the intr-day tradability of ETFs to be a fatal flaw since this characteristic would undermine true buy-and-hold investing. [What You Should Know About ETF Bid/Ask Spreads]
“To this day, Jack hates ETFs,” Gus Sauter, Vanguard’s chief investment officer, said in the IndexUniverse report. “Jack views them as solely trading vehicles, and while they can be used that way, I don’t think that the bulk of our investors do use them that way.”
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.