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B/c when the fund managers buy assets to make the index fund to resell to retail investors, they usually get the same voting rights from their ownership as a no
by Enginerrrd 5y ago
B/c when the fund managers buy assets to make the index fund to resell to retail investors, they usually get the same voting rights from their ownership as a normal shareholder, and they don't pass that part on to the retail investors, no?
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- lr4444lr 5y agoVanguard does. They make recommendations about whom you should vote for, but vote you do.
- quickthrowman 5y agoWrong. If you own VOO you don’t get to vote on the underlying assets.
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- bombcar 5y agoThey often actually do, vanguard sends me proxy statements now and then which I deign to ignore.
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- deleted 5y ago[deleted]
- quickthrowman 5y agoWrong. If you own VOO or VTI, you don’t get to vote on the underlying assets.
- bombcar 5y agoIf you care about voting don't own the ETFs and instead own the funds directly?
- Enginerrrd 5y agoIt's not so much about that as an individual, but rather, is it good for the market that the managers of these index funds that just pass through ownership of the asset really get such powerful voting rights? To make it even weirder, I believe these funds are sometimes bought by public pension fund managers and the like. So it feels oddly corrupt.
- bombcar 5y agoBogle himself commented on it in his later years - managers capitalism - by managers for managers, not for the employees or the owners. http://johncbogle.com/wordpress/wp-content/uploads/2019/08/niri-6-03.pdf http://johncbogle.com/wordpress/wp-content/uploads/2019/08/n...
- quickthrowman 5y agoCorrect, Vanguard votes on the underlying assets of an index fund, not individual (or other) investors. You do get to vote if you own shares of individual companies.
- deleted 5y ago[deleted]