Fortune, Dec 15, 2016 (II)

choi

Erika Fry, A Mutual Fund Giant Flexes Its Muscle. By championing low-cost investing, Vanguard has emerged as a true financial services colossus, with $3.8 trillion in assets. Th big question: How will it use the clout that comes with all that money?
http://fortune.com/vanguard-mutual-funds-investment/

Note:
(a) "Vanguard, the low-drama, low-cost index shop headquartered outside Philadelphia in Malvern, Pa * * * In September, [2010] Vanguard had surged ahead of longtime industry leader Fidelity to become the world's largest mutual fund manager. * * * [CEO Frederick William 'Bill' McNabb III] penned a letter to his 12,700-strong 'crew'—Vanguard is named for an 18th-century ship, and nautical terms abound there—and posted it internally, on Dec 15, 2010, to 'Bill's Blog.' "
(i) Malvern, Pennsylvania
https://en.wikipedia.org/wiki/Malvern,_Pennsylvania
(a borough [equivalent to a town] in Chester County; twenty-five miles west of Philadelphia; section 3 Name: unknown)
(ii) The Vanguard Group
https://en.wikipedia.org/wiki/The_Vanguard_Group
(named after Horatio Nelson's flagship at the Battle of the Nile [Aug 1-3, 1798], the HMS Vanguard)

Quote: "is the largest provider of mutual funds and now the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock, with about $451 billion in ETF assets under management, as of March 2015. * * * Vanguard is owned by the funds themselves and, as a result, is owned by the investors in the funds.
(iii) relationship between Vanguard and Wellington Management Co (founded in Philadelphia but current headquarters

Charles Stein, How Vanguard Gains From Firm That Fired Founder Jack Bogle. Bloomberg, Mar 17, 2016
https://www.bloomberg.com/news/a ... illion-for-vanguard
(Vanguard "would build its name with index funds while Wellington managed some of its active pools [mutual funds]")

(b) "Six years on, Vanguard is still No 1 in the mutual fund world—and by a widening margin. The company's pile of assets under management has more than doubled, to $3.8 trillion * * * And today its ETF business has surpassed that of the industry pioneer, State Street, and trails only BlackRock, the world's largest asset manager * * * Vanguard now owns about 5% of the average [read: each and every] publicly traded company in the US. * * * The Vanguard brand was built on the idea of relentlessly reducing the cost of investing for the average person—not on activism."

difference with index fund: "ETFs typically have higher daily liquidity and lower fees than [index] mutual fund shares:  Investopedia, undated.
http://www.investopedia.com/terms/e/etf.asp

(c) "It’s a cool fall day on Vanguard's suburban campus, and McNabb is sucking on a lozenge. His voice is hoarse after racing in the Head of the Charles Regatta the previous weekend."
(i)
(A) throat lozenge
https://en.wikipedia.org/wiki/Throat_lozenge
(Cough tablets have taken the name lozenge, based on their original shape, a diamond)
(B) lozenge
https://www.merriam-webster.com/dictionary/lozenge
(pronunciation)
(ii) Head of the Charles Regatta
https://en.wikipedia.org/wiki/Head_of_the_Charles_Regatta

(d) Jack Bogle "structured his new firm in a completely novel way—as a 'mutual mutual fund [the first mutual in the sense of Liberty Mutual],' or an investment company that would be owned by its member funds and operated wholly in the interest of its shareholders. It would run like a nonprofit, at cost * * * The company's defining development came in 1976, when Bogle introduced Vanguard’s first index fund. It wasn’t an industry first—Wells Fargo  WFC 0.15%  beat him to it—but Bogle was a true believer in the concept: Over the long term you can’t beat the market; it’s better just to own a piece of every stock and save money on trading fees too.