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This is according to his book, “Stay The Course: The Story of Vanguard and the Index Revolution”, John Bogle’s Vanguard Group, the creator of the first index fund, was a massive failure when its “First Index Investment Trust” was launched back in 1975.
The idea of the “index fund”, a fund that simply tracked the S&P 500 market, was almost universally rejected as a concept at the time.
Mr. Bogle describes how, one year after launching Vanguard, the company’s first IPO of the “First Index Investment Trust” raised only 5% of its initial goal of $250 million.
His competitors on Wall Street pointed and laughed.
The book describes how Vanguard’s fund struggled for years to gain traction…
Now Vanguard represents over 50% of all index fund investments in the stock market with over $2.3 trillion invested.
Amazing what can happen when a good idea is put to work and compounded over 45 years!