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ETF Specialist

Can Anything Stop Vanguard?

Short of an unlikely breach of investor trust, Morningstar’s Ben Johnson thinks the fund giant will continue its momentum.

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This ETFInvestor weekly update was originally sent to subscribers on April 29, 2016. Download a complimentary copy of ETFInvestor by visiting the website.

What Will Stop Vanguard?
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.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.