The Dominance of Passive Investing and Its Effect on Financial Markets
Founded in 1975 by John Bogle, The Vanguard Group pioneered passive investing, an innovative way to reduce the cost of the investment process and simplify it for everyday Americans. Since then, passive investing, led by index funds and exchange-traded funds, has exploded. According to Statista, passively managed index funds accounted for 19% of the total assets investment companies managed in the United States in 2010. As of 2023, that number had skyrocketed to 48%.