Vanguard is gradually becoming the number one choice for average investors due to its unique organization structure: Vanguard is owned by the mutual funds it runs. That makes their funds very inexpensive. Ben Johnson writes on Morningstar: “Vanguard is in a rare position. It has risen to the top of its league and continues to experience above-average organic growth. It is now bringing in roughly $1 billion per business day in new investor money on a run-rate basis. More and more investors are entrusting their hard-earned money to Vanguard. One of the few things I could see reversing this trend would be a breach of trust, but that is an awfully difficult scenario for me to imagine. The firm’s ownership structure is designed to minimize virtually all of the most common misalignments of interest that breed distrust and create bad incentives for stewards of shareholders’ capital.” The fund giant is growing bigger everyday with over $3.0 trillion in assets. That is a good news for common investors using Vanguards fund. The larger Vanguard gets and the lower fees go. (morningstar.com)
Vanguard Is Unstoppable With $1 Billion Per Business Day in New Investor Money
