The most passive-aggressive innovator on Earth.

Last week, Morningstar noted that more than half of the net flows into ETFs and mutual funds in 2016 went to one firm: Vanguard. That pushed the indexing giant’s assets over the $4 trillion mark and within about $1 trillion from world leader BlackRock. But what you may not realize about the passive investing giant is that it isn’t too shabby as an active manager. Perhaps to underscore that side of the house, Vanguard’s CEO Bill McNabb blogged that active management can live to fight another market if it embraces lower fees and longer time horizons. Considering that Vanguard’s average active fund expense ratio is just 0.27%, the firm certainly is in a strong position to be competitive if passive investing cedes some of its momentum this year.

 

 

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