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Vanguard cites shunned founder Jack Bogle to deflect criticism after epic ESG flip-flop, extoling the founder's 'whole haystack' investing strategy versus finding the 'needle'

The Malvern, Pa. firm played the Bogle card amid an about-face on NZAM, which it joined 21 months ago with heavy hitters like BlackRock, to 'steward' client assets, but external GOP political pressures may have forced it to cave.

Author Oisin Breen January 4, 2023 at 2:02 AM
1 Comment
no description available
Scott Fitzpatrick: It’s certainly possible that their decision to leave NZAM contributed to … Vanguard being excused from the Texas ESG meeting.
Brooke Southall and Keith Girard contributed to the editing of this article.

ETFs


Brian Murphy

Brian Murphy

January 4, 2023 — 5:10 AM
As I've previously stated, ESG investing is a "meme", meant to increase profit margins under the guise of "doing good". Like all "meme's" it starts out as a fringe idea or a swell in the ocean, gathers a cult following, then morphs into a "sub-industry" that takes on a life of its own (a tidal wave) - new firms that aim to steer the zeitgeist, analytic providers hell-bent on categorizing ESG-zyness of each publicly traded entity, index providers, etc. Successful investment memes (like indexing) make sense from both the investor and advisor perspective and can be long-lasting and change the industry. But memes that don't work from both the investor and advisor side of things collapse of their own weight. When recognized they fall far quicker than they grew, leaving firms grappling with when to cut the cord. IMO, Vanguard's decision signals the apex.

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March 25, 2023 at 1:32 AM

Biz Briefs: Schwab puts checks for $52 million in mail to robo-RIA customers allegedly misled about cash allocations • BlackRock blacklisted (again) • iShares beats NZAM-exiter Vanguard • Fidelity makes first acquisition in eight years • CFP board realizes Moms don't like CFPs

BlackRock gets Kentucky coal in stocking, and Vanguard keeps skating; iShares inches above -- by 2.8% -- Vanguard's annual net new ETF asset haul; Fidelity takes "natural next step" for stock plan business; new CFP chair outlines plans and the DOJ is set to become a major Robinhood shareholder..

January 13, 2023 at 3:01 AM

Dimensional Fund Advisors, long the flagship of factor investing, struggles to chart a course as a nimble rival and big foot competitors cut into its market--and exploit its slow move to ETFs

Vanguard, BlackRock and Avantis rattle a complacent Dimensional Fund Advisors with fee cuts and ETF roll outs based on 'smart beta.'

August 9, 2022 at 1:57 AM

Vanguard Group shows up as 'alpha' disciple with two new fixed-income fund launches as it surpasses PIMCO's $2 trillion with ex-Goldman Sachs partner now calling the shots

The $8 trillion Malvern, Pa. manager owns beta investing, but RIAs are demanding higher income -- hence market timing and cherry picking -- from their fixed-income allocation.

August 10, 2021 at 11:46 PM

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