One more on Vanguard this week and then I swear I’m done.
Morningstar’s analysts just did their latest evaluation of the parent company and had this to say about its recent growth explosion:
After growing steadily for years, Vanguard’s popularity has exploded more recently. With nearly 22% of the combined open-end mutual fund and exchange-traded fund asset base, the firm is more than twice the size of its next-largest U.S. rival. As investors have embraced low-cost investing, Vanguard’s inflows have gone parabolic. The firm collected an estimated $230 billion in U.S. inflows in 2015 and is slightly ahead of that pace so far in 2016. Outside of Vanguard, the rest of the industry has collectively experienced net outflows.
One fund company, 22% of the whole fund industry’s assets. Crazy. Starting to look like the soft drinks business between VG, State Street, Dimensional and BlackRock/ iShares.