January 3, 2014

From MarketWatch



Morningstar

You should be worried about growing inequality. Yes, in the broad economy, but also if you’re in the fund industry competing against Vanguard.

Jack Bogle’s company continued to dominate the industry last year, says a Morningstar report out Friday looking at 2013 flows.

The Vanguard Group took in $117 billion of long-term mutual fund and ETF assets as of Nov. 30. That’s out of $425 billion raked in by the whole industry.

You could think of it as more than $1 of every $4 invested in funds during 2013, as Barron’s Brendan Conway puts it.

Morningstar analyst Michael Rawson writes:

“Vanguard has finished first or second in terms of flows in all but two of the past 20 years. This has allowed the firm to increase its market share to 18% from just 8% two decades ago and places it well ahead of rivals Fidelity and American Funds, both of which have lost market share over the past five years.”

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