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Bogle was certainly a visionary, though I always find it odd that he never got on the ETF bandwagon. They are the next logical step in his vision for finance.
by mruts 8y ago
Bogle was certainly a visionary, though I always find it odd that he never got on the ETF bandwagon. They are the next logical step in his vision for finance.
Granted, they carry some risks that index funds don’t (liquidity and market risk), but they provide many advantages (like taxes). They also can be repurposed for any kind of investment vehicle as they essentially are just an “API.”
- lr4444lr 8y agoBogle said in an interview that I cannot find but i's probably on YouTube that he saw nothing wrong with ETFs as an investment product, simply that they encouraged non-passive behavior for most investors, and he thought temptation to time the market or liquidate/buy at the wrong time were tremendous stumbling blocks or get hoodwinked by grandiose promises of some arcane sector, and ETFs made that easier to give in to. (I'm paraphrasing.)