Passive investing giant Vanguard's assets under management have exceeded $4tn for the first time after a year in which the firm pulled in more money than all of its major competitors put together. The milestone represents more bad news for active managers, who handpick stocks and assets for funds. Vanguard has been one of the most aggressive investors this year, buying up shares at an average annual rate of $16.6bn over the past 12 months.
Passive investing giant Vanguard's assets under management have exceeded $4tn for the first time after a year in which the firm pulled in more money than all of its major competitors put together. The milestone represents more bad news for active managers, who handpick stocks and assets for funds. Passive funds, which mimic indexes and strategies, are popular because they command lower fees than actively managed vehicles.