NGPF Podcast (Classic): Robin Wigglesworth on the Growth of Index Funds
From the NGPF Archives, a conversation with Robin Wigglesworth, author of Trillions, who has done the impossible: he's written a book about index funds that, once you get started, you won't be able to put down.
The index fund product itself may not be compelling, but the characters that Wigglesworth describes certainly are. He traces the growth of index funds and how they moved from a concept developed by academics to how they became the leading investment choice for mutual fund investors.
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- 0:00~1:20 Introduction
- 1:20~3:49 Life as a journalist for the Financial Times
- 3:49~6:03 Early money lessons
- 6:03~8:30 Decision to write Trillions
- 8:30~12:20 Warren Buffet’s bet
- 12:20~22:06 Beginning of index funds
- 22:06~25:41 Institutional investors and indexing
- 25:41~32:22 Burton Malkiel and Jack Bogle’s role in the creation of index funds
- 32:22~32:53 A word from NGPF
- 32:53~36:54 The founding of Vanguard
- 36:54~41:19 Index funds taking off
- 41:19~44:49 Vanguard’s growth
- 44:49~47:11 ETFs and the State Street Corporation
- 47:11~53:54 BlackRock and iShares
- 53:54~60:20 Potential concerns with index funds
- 60:20~62:34 Conclusion
- On The Buffet Bet: "He [Ted Seides] chose basically five different funds of hedge funds... together there was a group of a 100 hedge funds, but each of those five piles of hedge funds, none of them managed to beat the US stock market. [They all underperformed] This boring, plain vanilla index fund, that Vanguard sold for 0.04%."
Two resources to teach young people about index funds