Beyond Nvidia: Stock Funds That Leave the S&P 500 Behind
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 05 2024
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Source: MarketWatch
- John Bogle's Success: John Bogle, the founder of Vanguard Group, proved his critics wrong by showing that a low-cost index fund tracking the S&P 500 could outperform most active managers.
- Index Fund Dominance: In the first quarter of 2024, index fund assets in the U.S. surpassed those of active funds for the first time, with Vanguard's original fund alone exceeding $1 trillion.
- Legacy of Vanguard 500 Index Fund: The success of the Vanguard 500 Index fund, initially dubbed "Bogle's folly," highlights the significant growth and impact of index funds in the investment landscape.
- Historical Milestone: The milestone of index fund assets surpassing active funds reflects a shift in investor preferences towards passive investing strategies.
- Implications for Investment Industry: The rise of index funds signals a broader trend towards low-cost, passive investment options and poses challenges for traditional active fund managers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
