Vanguard’s father and son differ (11/13)

Vanguard’s founder, Jack Bogle, is the father of indexing, a passive form of rules-based investing, yet his son sells an active rules-based approach. What’s wrong with this picture?

Since the son’s active returns are highly correlated to passive indexing, the son’s investors have not enhanced their diversification. At ETF PM, we combine uncorrelated rules-based strategies to enhance performance and reduce risk.

Strategic indexing is an important starting point for all investors, and trend following is the best active strategy to add. Trend following is also a rules-based approach, and trend following has repeatedly delivered gains when equities have crashed.

In Bogle Family, It’s Either Passive or Aggressive

By Liam Pleven, 11/28/13

Jack Bogle is the founder of Vanguard Group and considered by many investors as the father of passive investing… Mr. Bogle has been a public decrier of…active mutual funds…, calling it a “loser’s game.”

His son, John, is a fund manager who has succeeded at doing just that.

Click here for the full article and see our ETF Trend Following presentation.


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