If you’re an owner of an exchange-traded fund (ETF) or index fund, chances are they are from either Vanguard or Blackrock. These two companies are the powerhouses in the industry.
Vanguard was established in 1975 by Jack Bogle, who believed that a mutual fund company should not have outside owners. Instead, shareholders of the Vanguard Group own the company’s different funds.
Blackrock started in 1988 with eight people in a single room who shared a determination to put clients’ needs first. By 1999, Blackrock rapidly grew to $165 billion in assets under management and then went public on the New York Stock Exchange.
An exchange-traded fund (ETF) typically matches an index similar to index investing. However, an ETF can trade on an exchange, one of the most significant differences between an ETF and an index fund.