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Aren't those called Sovereign Wealth Funds?

• toomuchtodo 8y ago
  They are. Think of Vanguard as a US sovereign wealth fund that hasn’t reached full participation yet (and without the natural resource extraction bootstrapping). If that’s a strange thought, consider that the Bank Of Japan is a significant owner of equities on the Nikkei. Disclaimer: Vanguard customer
  • pm90 8y ago
    Wow. I never thought of it that way, but this is so true. I'm interested in this question: would the US economy be where it is today without index funds? Or is it the index funds like Vanguard that allowed millions of Americans a cheap, safe way to predictably grow their wealth? The reason I ask is that throughout American history, its the banking sector that was responsible for financial crises and a loss of wealth for most Americans. Have index funds plugged this hole and allowed the US to grow? Yeah yeah I know about 2008 etc. but that _was_ caused mostly by active investors.
    • toomuchtodo 8y ago
      > would the US economy be where it is today without index funds? Or is it the index funds like Vanguard that allowed millions of Americans a cheap, safe way to predictably grow their wealth? Yes.
  • closeparen 8y ago
    An investor’s ownership of Vanguard is proportional to his investment. So no, not at all.