Vanguard - Exponential Growth

[dixonge]

Holy crap. How do you get that big, and *still* outpace everyone else, combined, by that much? Stunning.

Vanguard Is Growing Faster Than Everybody Else Combined

 

[Hermit]

Holy crap. How do you get that big, and *still* outpace everyone else, combined, by that much? Stunning.

Vanguard Is Growing Faster Than Everybody Else Combined

So... When is big too big? And when it gets there, what to do??

 

[cooch96]

Also impressive is the fact that they aren't buying out the competition. There are still 4,000 competitors.

 

[MRG]

So... When is big too big? And when it gets there, what to do??

That's a several trillion dollar question.

Years ago I did capacity planning for an application they used. Those were interesting times.

 

[Texas Proud]

One of the interesting things is that 8.5X over all other funds include Fidelity which seems to be talked about on par with Vanguard... I guess that it is not when considering people voting with their money...

 

[Hermit]

That's a several trillion dollar question.

Years ago I did capacity planning for an application they used. Those were interesting times.

I guess I'm betting my money on the several trillion dollar question. I hope it doesn't turn out too bad. I also question the idea of the index tail wagging the investment dog. I think we may find the answer to this one in my lifetime. I probably won't like the answer...

 

[ExFlyBoy5]

Wow. I knew they had been growing quickly, but...geez. I can see why there have been some customer service issues!

 

[OldShooter]

Well, their passive funds are guaranteed to outpace the majority of comparable actively managed funds by the simple arithmetic of the situation. Size doesn't matter: https://web.stanford.edu/~wfsharpe/art/active/active.htm and https://famafrench.dimensional.com/videos/is-this-a-good-time-for-active-investing.aspx

Also read any S&P SPIVA Report Card. They come out every 6 months and always read about the same.

 

[broadway]

If the growth at Vanguard concerns people, they can always go to Fidelity.
I have been adding to my Roth IRA invested in a Spartan Fund at Fidelity mainly because I don't like having all my eggs.

 

[unclemick]

Wow. I knew they had been growing quickly, but...geez. I can see why there have been some customer service issues!

I hope not. Cause the Wife turns 70 this year and guess where we are going to consolidate funds prior to RMD time?

heh heh heh - ? Does that make 'Bogle's Folly' the investment worlds 'Tortise and Hare fable'.

 

[samclem]

heh heh heh - ? Does that make 'Bogle's Folly' the investment worlds 'Tortise and Hare fable'.

I'm glad Jack's here to see this, it sure has taken long enough for the world to beat a path to his (company's) door.
I am a bit worried about Vanguard's moves away from the strict Doctrine of Bogle (e.g. now offering advisory services for a fee, putting the spotlight on their managed funds, etc). But they are still the company that brought indexing to the masses, they have a unique corporate structure that helps assure customers will benefit most as Vanguard grows, and they still (mostly) keep to the path that has brought them success. "Doing well by doing good . . ."

 

[sengsational]

Also impressive is the fact that they aren't buying out the competition. There are still 4,000 competitors.

Is buying out the competition an option? Vanguard has no stockholders. We are the owners.

 

[dixonge]

Is buying out the competition an option? Vanguard has no stockholders. We are the owners.

No need to buy them out when you are sucking all the air out of the room LOL

 

[jimbee]

I guess fees really do matter.

 

[MRG]

No need to buy them out when you are sucking all the air out of the room LOL

+1

It wouldn't make sense to. Why buy something you don't want, a fund that's not managed in your preferred method. Then they'll have to convert the data from the old system of record to Vanguard's own system. It would be a bad business decision.

 

[kgtest]

when I was younger and none the wiser, the word "vanguard" scared me as an investor. Always thought I needed tons of money to open an account and never actually picked up the phone.

sure glad I did


Have managed accounts with fido, schw, metllf, trp, tda but like VG the most for some reason...maybe the nostalgia and unbeatable fees.

 

[mickeyd]

I am not too impressed by VGs growth, but I am impressed by the growth of my VG account.

 

[Lsbcal]

Well it is a bull market.

Have had money in VG since the early 1970's when I started a new thing called a Money Market account.

 

[MRG]

Well it is a bull market.

Have had money in VG since the early 1970's when I started a new thing called a Money Market account.

Same bull market for the other two hundred and fifty fund companies too.

 

[Texas Proud]

No need to buy them out when you are sucking all the air out of the room LOL

+1

It wouldn't make sense to. Why buy something you don't want, a fund that's not managed in your preferred method. Then they'll have to convert the data from the old system of record to Vanguard's own system. It would be a bad business decision.

AND.... those funds that are bad, Vanguard is already getting their money!!! Might as well have the customer move it for free....