4 ms·

But then that would be active management. This is something Vanguard expressly does not do.

• wbl 9y ago
  They don't do active fund management AKA stockpicking. The sure do care about making sure management doesn't have it's hand in the till.
• sigstoat 9y ago
  That's not what active management is. "We believe that our active engagement demonstrates that passive investors don’t need to be passive owners." https://about.vanguard.com/vanguard-proxy-voting/ https://about.vanguard.com/vanguard-proxy-voting/
  • jessriedel 9y ago
    To clarify for other: the distinction is between (1) active choice of what stocks to buy and (2) active voting as a shareholder.
• jalopy 9y ago
  By "active management" I mean actively taking a role in shaping company management, board makeup, corporate governance, say on pay, etc. While Vanguard may vote all their shareholder proxies, they almost always vote along with the recommendations of management - practically never holding management accountable. Proof: Take a look at their actual voting record on the S&P 500 fund https://about.vanguard.com/vanguard-proxy-voting/supporting-files/proxyvote0040.pdf?v=1472654330804 https://about.vanguard.com/vanguard-proxy-voting/supporting-...