Who is Vanguard? Vanguard Investments is among the best and favorite of mutual fund companies for the do-it-yourself crowd. Founder Jack C. "Jack" Bogle formed the company around his idea that low-cost index funds can provide superior returns for the long-term investor.
Bogle, now retired, effectively and consistently demonstrated to the investor community that it is foolish to attempt an actively-managed approach where a simple, low-cost passively-managed index fund strategy can provide superior returns.
It is this kind of simple and useful guidance that contributed to the prevalence of mutual fund research tools and websites, such as Morningstar, which provide the means to find no-load funds and low expense ratios.
Bogle taught that the combination of higher relative costs and the tendency for human error erodes returns for actively-managed funds over time. Therefore, it is the common sense approach of low costs and the removal of emotional barriers that makes index funds the best vehicles for investors, especially for those with long-term time horizons (greater than 10 years).
Vanguard also offers Exchange Traded Funds (ETFs), which have not been completely embraced by Bogle, who has labelled ETFs as a trend potentially dangerous to the average investor.
Vanguard and Bogle have a loyal following of do-it-yourself investors that affectionately call themselves "Bogleheads" who apply Jack Bogle's practical guidance to investing and personal finance.
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