Eric Balchunas on The Bogle Effect

Mar 23, 2022

Our good friend Eric Balchunas (Senior ETF Analyst at Bloomberg Intelligence) joined us once again, this time to discuss his new book “The Bogle Effect: How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions”.

We covered topics that included:

• Bogle’s early life as a university student and his 1949 thesis
• Becoming the young CEO of Wellington Fund at age 35
• Bogle’s initial enthusiasm with active management before building his “passive juggernaut”
• The beginnings of Vanguard – starting off as a “back-office company”
• His rough yet friendly attitude to competitors
• Vanguard as the “Amazon of asset managers”
• Giving people what they wanted before they even knew it
• Mutual ownership structure as a key feature of the ETF revolution
• Growing and taking market share from “closet beta” funds
• Vanguard took 30 years to get to USD 1 trillion in AUM, and another 15 years to get to USD 8T
• Crypto ETFs as a possible next step for Vanguard
• Thematic ETFs as the “hot sauce” on top of vanilla portfolios
• And much more

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

 

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.