The Dark Side of Vanguard's Success: A Reader's Argument
Was last week's column too benign?
Don Andersen of Red Pine Investment Counsel wasn't enamored with last week's column, which stated that neither Vanguard investors nor the overall stock market should be troubled by Vanguard's record-breaking net inflows. In fact, Mr. Andersen found my article "grossly misleading."
I liked his email, for two reasons. First, in linking Vanguard's fortunes to the success of large-company U.S. stocks, Mr. Andersen expresses a common view. I do not believe that view to be accurate--but it is widely enough held so as to deserve further discussion. Second, Andersen corrects my discussion of how index managers affect the market's trading. He is right, I was not.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.