Why should you choose underwriting Vanguard’s index funds?

The income is minimal. Whether as an underwriter, self-investment, or self-holding as an institutional investor, Vanguard's S&P 500 ETF does not seem to be the best choice.

Regarding this point, Carter's idea is actually very simple. What is the easiest product to sell to novice financial customers? Domestic banks in the past life have already given Carter the answer: capital guaranteed products!

In other words, it is a product that claims to maintain capital and can indeed maintain capital and increase in value most of the time!

This kind of financial product is the easiest for novices to accept!

After all, no one wants to lose their money.

Although in the United States, a country with a more developed financial market and a longer financial history, there are far more gamblers than in the past, but just looking at the capital land of South Georgia and the market environment composed of those people, in fact,

It is no different from the environment in Carter's previous life that was filled with a large number of financial novices.

Only Vanguard Index Funds whose underlying objects are all stocks on the entire market can give Carter the confidence and confidence to launch "capital preservation and value-added" financial products.

It's just that stubborn old man...

"Julian, what do you think, if I start one myself, or if you do it for me, we can make a similar index fund..."

"Don't even think about it!"

"Are you just playing house in the financial market? Just do whatever you want... Let me tell you, Tiger's positioning is not that of a pioneer. If we lose the temptation of high yields, the entire Tiger will not

Exist again!"

Julian blew his beard, stared at Carter fiercely:

"Just like our name, we have been a tiger in the capital market since our establishment, constantly pursuing high returns and grabbing more market shares. This is our entrepreneurial spirit. It is impossible for a tiger to do that kind of low-priced business.

cost, and an extremely conservative investment strategy! My analysts are also a group of...ha, terrorists in the capital market, guys who are afraid of chaos in the world..."

"Can you imagine what the consequences would be if a group of terrorist-like, hungry-eyed people were allowed to manage such a passive fund?!"

"Furthermore, none of them, no, including me, can achieve the extreme cost reduction that Mr. Bogle did. Besides, after he came out of Wellington, he just... just met...

Like God... almost becoming a saint..."

"Mr. Bogle is the founder of Pioneer, but do you think he is the big boss of Pioneer?"

"no!"

"Vanguard has no so-called big boss. Their equity structure is their fund shares. In other words, their shareholders are all investors, and the fund shares are linked to the company's equity... Go out and have a look, search all over Wall Street, and find

All over the United States, only the Pioneers are doing this!"

"The previous sec investigation of Pioneer was focused on this issue. They were not even allowed to do this at one time. Of course, now a special license has been reissued. But under this ownership structure and rules, what Mr. Bogle can obtain at Pioneer

The income is only based on the position, such as the salary of the fund manager, and the income generated by the share invested in Vanguard..."

"I did a simple calculation. With Bogle's current situation, how much money can he invest? Three hundred thousand, five hundred thousand? This is incredible. According to the growth rate of the market, he can earn tens of thousands of dollars in a year, and then

In addition to salary... year-round, the income is less than 100,000, and I have to invest a lot of money myself, just to do such a thing..."

"I don't have such lofty goals as him! To earn such a small amount of money in a year, I'm sorry, I'm a vulgar person!"

"Me too...then who isn't?!"

Carter helplessly held up his forehead, taking it for granted...

No matter what Bogle said, he was also a top student at Princeton, and he was once the helmsman of a large investment management company. He was still the kind who rose to the position at a very young age...

This kind of people usually have a term to call them: genius!

Talent, rich experience, coupled with the kind of persistent belief or pursuit that Carter doesn't know how to evaluate, allowed him to create today's pioneers, such a most suitable goal.

But if someone else does it, they have a huge amount of money, but their income is only a little bigger. Who would do this?!

It's either corruption, salary increases, commissions, or radical strategies. No matter which one, this fund will definitely not do well. At least, it will not be Vanguard's opponent...

"Oh, I'd better talk to him!"

Carter shook his head and sighed:

"If it doesn't work, I'll just play around. For example, my bank, as an institutional investor, holds their shares. Then we use these shares as a basis to issue our financial products and sell them to customers. It's nothing more than using the proceeds from the Vanguard Index Fund.

, to pay the income from the financial product, and the money sold from this financial product is used to purchase the Vanguard Fund shares.”

"In this way, I am no longer an underwriter, right? It will not affect the pricing strategy of Vanguard Fund. After all, we sell different things..."

"This is a good idea. I remember that you have a good relationship with your FDI. As long as they acquiesce, you can really do this! But the difference in the process and the loss when the market falls, you need to think carefully!"

"Yeah, I know."

Carter nodded...

After all, there are only a few periods when the market falls. Moreover, Carter clearly knows that after entering the 1990s, the U.S. stock market will usher in a period of rapid rise. Generally speaking, in order to maintain the credibility of his "capital preservation and appreciation" financial products...

Even if you accept the loss and use your own funds to fill the hole, from a financial perspective alone, you should make more profits than you lose. And in the market decline, which is the so-called market cold environment, I still adhere to the principle of integrity.

, paying customers the agreed benefits as scheduled, which adds to the bank’s reputation and credit rating, is basically an intangible benefit!

And, it’s not small!

When Carter described this wild idea to the little old man John Bogle, the little old man was obviously stunned for a moment...

This...how the hell can this be played like this?!

Although John Bogle knew very well that Carter was still following the path of an underwriter, the so-called middleman who made a profit on the price difference. But unfortunately, the name Carter promoted was that of institutional investors...

I'm just here to buy your fund shares. Aren't you in need of investors? The financing target of US$150 million set when it was first issued in 1976 has only barely reached US$100 million until now...

There is no way, even though John Bogle's algorithm is very good in theory, and the transaction fee is jaw-droppingly low, but who let the S&P 500 index fall in recent years...

You can't say that it has been falling, but its increase has lost to the returns of almost most active funds.

At this time, when Carter came to Pioneer waving a banner of 80 million US dollars, even if he knew what Carter was thinking, it would be difficult for John Bogle to say no...

"Are you sure you won't sell financial products or fund shares in the name of Pioneer? If you promise me that you won't use any of Vanguard's names in publicity, or sell our fund shares to earn the price difference,

Then...I would like to thank you for your trust in us, and congratulations on becoming the largest investor and largest shareholder of Vanguard..."


Chapter completed!