Do Vanguard’s Indexes Beat Their Own Actively Managed Funds?
Vanguard founder, John Bogle, is investing’s Pied Piper.
He first blew his pipe in 1976. Things started slowly. But eventually, legions followed him into index funds.
Actively managed funds, he says, are mostly a waste of money. They earn lower returns because their fees are higher.
But Bogle owns at least one actively managed fund—and it has thrashed the market.
It’s called the Vanguard Windsor fund. If $10,000 were invested in it from August 1976 until March 3, 2015, it would have grown to $967,947 versus $581,814 for Vanguard’s S&P 500 index.
Few people think of Vanguard as an actively managed mutual fund company. But it has more active funds than index funds.
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