John Bogle Critical Of Some ETF Returns (SPY, VTI, BND, VIG, VWO, VEU)
John Bogle, founder and former CEO of Vanguard, believes that ETFs may be one of the greatest marketing tools of the 21st century, but, perhaps, not the best investing tool. In a recent CNBC interview John stated that Vanguard tracked the returns on 175 ETFs recently, and found investors fell about six percent short per year of the actual index. John did not specify what ETFs were tracked, or how they decided those ETFs over the other 1000 plus funds. He did note that the funds tracked needed to be around for for five plus years.
John did note that he does like some total market ETFs. Specifically mentioned was the S&P 500 Index (NYSE:SPX) which he even complimented stating, “There probably aren’t many investments that are better.”
ETFs mentioned: Vanguard Total Stock Market ETF (NYSE:VTI), Vanguard Total Bond Market ETF (NYSE:BND), Vanguard Dividend Appreciation ETF (NYSE:VIG), Vanguard Emerging Markets Stock ETF (NYSE:VWO), Vanguard FTSE All-World ex-US ETF (VEU).
See the full CNBC interview below: