Industry Updates

Vanguard is getting too big: Jack Bogle

David Tuckwell

Three interesting and important ETF stories from around the web.

1) Jack Bogle: Vanguard is getting too big

Jack Bogle has said that Vanguard, the company he founded and headed for 20 years, is in danger of becoming big. The octogenarian worries that as Vanguard, the world's second-largest money manager, approaches $5 trillion assets managed it will become unmanageable and fall foul of regulations, especially in Europe. In a speech at Cornell University, Bogle also warned that ETFs were becoming an "oligopoly", dominated by State Street, Vanguard and BlackRock.

Contacted for comment by the Financial Times, Vanguard's spokesperson said that Vanguard's growth was more or less an accident. Growth was never their intention, but a by-product of having great products at great prices.

2) Bitcoin opportunities and ETFs are coming

Institutional investors are drooling at the thought of getting their hands on bitcoin. And thanks to new financial innovations it could soon become possible. CME Group, the world's largest exchange, will allow bitcoin futures to trade. Allowing bitcoin futures would allow bitcoin ETFs, as the bitcoin futures can be held by the fund.

3) Harvard MBA's say no to active management

Those graduating from the world's top university with the world's top business qualification are saying no in record numbers to working in active management. Only 6% of Harvard's MBA graduates this year went into active management. The majority preferred to go into private equity and venture capital.

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