Vanguard is one of the biggest fund management companies in the world. Established in 1975 with an approach that changed the landscape of investing forever, founder John Bogle is regarded by many as the grandfather of passive investing.
The underlying principle that shook the investment world was and still is, to make money for its investors, not from its investors. Instead of paying dividends to investors, it puts this money back into lowering the costs of its funds.
Crucially, this means there are no outside owners and therefore no conflicting loyalties. The company is owned by its funds, which in turn are owned by their shareholders. This unique client-owned structure allows Vanguard to return profits to fund shareholders in the form of lower expenses. Low costs help clients keep more of their returns, which can help them earn more money over time. Everyone wins.
Vanguard has driven the mass adoption of low-cost index investing, ensuring its clients get maximum value for money with minimal knowledge.
As a result, today Vanguard holds £3.5 trillion in assets under management and has over 20 million investors. Its fees are some of the lowest in the market and it has an enviable reputation for looking after its customers.
You can read our full Vanguard review here.