John Bogle was the founder of the Vanguard Group and a significant supporter of index investing.
Mostly know as 'Jack', Bogle changed the mutual fund industry by developing index investing, which enables investors to purchase mutual funds that track the more extensive market.
He passed away on January 16, 2019. He was at the age of 89 years old.
John Bogle went to Princeton University for college, where he learned about mutual funds.
During the initial times of his career, he had a job at Wellington Management prior to establishing a mutual fund company of his own, Vanguard Group, in the year 1975.
With Vanguard, Bogle utilized a new ownership structure in which the investors of mutual funds became partial owners of the assets in which they invested.
The funds have the ownership of the investment firm, which makes the fund shareholders, indirect owners of the firm.
This type of structure enables the firm to incorporate any benefits into its working structure, reducing the costs for fund investors.
In the year 1976, Bogle presented the Vanguard 500 fund, which tracks the profits of the S&P 500 and it was the first index the fund marketed to retail investors.
Bogle’s exceptional structure for Vanguard additionally made it a natural fit for the arrangement of no-load mutual funds, which don't charge a commission fee on investment purchases.
Bogle retired as the CEO and chairman of Vanguard in the year 1999.