Index Investing by the Numbers (INFOGRAPHIC)
Index investing has attracted a growing number of investors because of its ability to provide lower cost and better performance, on average, than active investing over the long run.
Times have changed since the first publicly available index fund was launched by John Bogle and the Vanguard Group in 1976. Back then, critics called it “Bogle’s Folly.” One competitor even circulated a propaganda poster featuring the likeness of Uncle Sam with the slogan: “Help Stamp Out Index Funds – Index Funds Are Un-American!”
Today, Vanguard is one of the largest mutual fund providers in the nation – and the world. Apparently, index funds are very American.
Let’s look at the numbers: