Bogle Sounds A Warning On Index Funds

Ted

FYI: There no longer can be any doubt that the creation of the first index mutual fund was the most successful innovation—especially for investors—in modern financial history. The question we need to ask ourselves now is: What happens if it becomes too successful for its own good?

The First Index Investment Trust, which tracks the returns of the S&P 500 and is now known as the Vanguard 500 Index Fund, was founded on December 31, 1975. It was the first “product,” as it were, of a new mutual fund manager, The Vanguard Group, the company I had founded only one year earlier.
Regards,
Ted
https://www.wsj.com/articles/bogle-sounds-a-warning-on-index-funds-1543504551

davfor

For anyone like me who does not have a WSJ subscription, here is a link to a review of the WSJ article. Its encouraging to see Bogle expressing his concerns....

www2.philly.com/philly/business/john-bogle-vanguard-wsj-index-funds-blackrock-state-street-fidelity-20181129.html