Skip to Content
US Videos

McNabb: Vanguard Won't Launch Fad Products

Vanguard chairman and CEO Bill McNabb says Vanguard will only launch new products that have enduring value for investors.

Mentioned: , ,

Dan Culloton: You've launched the Vanguard Explorer Value earlier this year. Are more active launches possible?

Bill McNabb: I think so. Again, there aren't that many spaces we don't have a good active offering, but if we think we can do it in a world-class way, we're going to do it. Interestingly, five years ago, active capacity was tight around the world and you had two things going on. A lot of money had flowed to active investment firms in general, and so people were being pretty selective about what they were doing from a growth standpoint, and they had the hedge fund phenomenon. You had the people going after, try their luck at running hedge funds and so forth, and you watch that dynamic kind of implode a little bit in '06, '07, or certainly into '08.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.