3 ms·
> But Vanguard is not-for-profit company because it's owned by its shareholders. Isn't every company owned by its shareholders, for-profit or not?
by theandrewbailey 8y ago
> But Vanguard is not-for-profit company because it's owned by its shareholders.
Isn't every company owned by its shareholders, for-profit or not?
- asdfman123 8y agoWhoops, I meant to say it's not-for-profit because it's owned by its customers. If you buy any of their funds, you also buy a small piece of Vanguard. To be pedantic, I don't know if you would classify that as not-for-profit or not, but the point is there isn't some external entity trying to make a profit off of you.
- gowld 8y agoThat "not for profit" (mis)intetrpretation is a huge myth. The execs of vanguard take home salaries and bonuses based on their performance, as decided by management (themselves). That's economically equivalent to them being owners and taking profits.
- firebird84 8y agoI think he means by its fundholders. If you own a share of VTSAX (for example), you also own a piece of Vanguard. If you own a share of a fidelity index fund, you do NOT own a piece of fidelity.