Bogle: Index Funds the Best Hope for Corporate Governance
Corporate governance should be based on long-term factors affecting the corporation, and traditional index funds are the only true, long-term investors, says Vanguard founder Jack Bogle.
Christine Benz: Hi I'm Christine Benz for Morningstar. As part of the annual Bogleheads conference, I recently sat down with Vanguard founder Jack Bogle to get his views on the growth in indexing products.
Benz: Let's talk about the growth of ETFs and passive products. You've talked about how it's been stupendous, but there has been some hand-wringing going on on the sidelines about whether the growth of passive products has the potential to change how the market is behaving, or some people have asserted that in fact it is changing how the market is behaving. What's your take on that question?