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50 years of changing the way the world invests
Scroll down to explore Vanguard's history.
The Vanguard Effect
Vanguard’s low-cost investments have created competition in the markets, pressuring asset managers to reduce their fees to remain competitive. Today, Vanguard’s ability to lower fees across the industry is widely known as The Vanguard Effect®.
1975
An unorthodox approach shakes up the industry
John C. Bogle has a revolutionary idea to build a mutual fund company that takes a stand for all investors.
Unlike mutual funds owned by outside management companies, Vanguard creates a company that is owned by the people who invest in its funds, with a mission to protect their interests and offer the best chance at investment success.
He calls his venture, “The Vanguard Experiment.”
1976
Vanguard democratizes indexing
Vanguard democratizes mutual fund indexing with its First Index Investment Trust (now Vanguard 500 Index Fund) offering lower costs and broad diversification to individual investors for the first time. Industry insiders ridicule the move as “un-American” and a “sure path to mediocrity.” For his pioneering of this concept, Bogle is often called the “father of indexing.”
1977
A low-cost revolution begins
Vanguard challenges the industry’s status quo with a series of powerful moves that lower the cost of investing.
In 1977, it is the first fund group of its size to convert to no-load distribution, bypassing the traditional broker-dealer network to eliminate sales charges on purchases of Vanguard funds.
In 1981, Vanguard opens its new in-house fund management company, Fixed Income Group, reducing Vanguard’s reliance on external fund managers—and the fees that come with them.
To further reduce costs in 1983, Vanguard launches low-commission brokerage services (stocks and bonds) that offer savings of up to 70% on stock trading commissions.
1986
Unprecedented opportunity for bonds
Vanguard introduces a second index-tracking fund to its offerings. Vanguard Total Bond Market Index Fund provides low-cost, diversified exposure to the broad U.S. market of taxable, investment-grade bonds.
1995
Vanguard joins the digital revolution
Vanguard's early online presence sets a bold new precedent for client services across the financial industry. By 1997, capabilities were added to enable clients to monitor account balances and transact on their fund holdings.
1996
Vanguard goes global
Vanguard Investments Australia opens its doors in Melbourne, marking the firm’s first international branch.
Over the next three decades, Vanguard goes on to expand its global footprint to include multiple European countries, Canada, India, and Mexico.
2001
Low-cost entry disrupts the ETF market
The firm begins offering ETFs as exchange-traded shares of Vanguard index funds with Vanguard Total Stock Market ETF. The unique and patented approach leverages the size and scale of existing index funds to bring lower-cost entries to the ETF market.
2011
Advisor services strengthen a post-crisis world
On the tail of the financial crisis, Vanguard launches its Financial Advisor Services division, providing products, services, and education to better serve registered independent advisors and broker-dealers. The division scales Vanguard’s mission to serve even more investors through partnerships with financial advisors.
“Well, I think anytime you go through a crisis, and 2008 was certainly the most significant crisis we’ve gone through, organizations have an opportunity to sort of rise or fall. And what Vanguard did was step up on behalf of clients. Frankly, we stepped up on behalf of the crew as well, and we emerged from the crisis, actually, a much stronger company.”
Bill McNabb, CEO 2008–2017
2014
Vanguard reaches 20 million investors
Vanguard’s once-unconventional structure garners the trust and loyalty of 20 million investors.
2021
AI innovation reinvents the trading floor
Vanguard solidifies its competitive status as a modern asset manager with a new, high-efficiency trading floor and the adoption of advanced artificial intelligence trading technology. In the years that follow, it goes on to introduce innovative offerings to amplify client service capabilities through Personalized Indexing and the Vanilla estate planning platform.
“Technology-driven solutions such as direct indexing continue to reshape our industry, driving better investment outcomes and lowering costs for clients. Wise investments in technology are an important equalizer, enabling us to democratize valuable investment capabilities and products.”
Tim Buckley, CEO 2018–2024
2025
New leadership, same mission
Salim Ramji
Senior financial services executive Salim Ramji joined Vanguard as CEO in July 2024 after more than 25 years in senior leadership roles across investments, capital markets, and wealth management.
“The current investor landscape is changing, and that presents opportunities for Vanguard to further its mission of giving people the best chance for investment success, which is more relevant today than at any time in the firm’s five-decade history. My focus is to mobilize Vanguard to meet the moment while staying true to that core purpose—remaining the trusted firm that takes a stand for all investors.”
Greg Davis
Vanguard president, chief investment officer, and board of directors’ member, Greg Davis oversees all aspects of the firm’s investment management and enterprise risk management. A 25-year Vanguard veteran and respected industry thought leader, he is a champion of product innovation at Vanguard and routinely advocates for regulatory changes that benefit everyday investors.
“For nearly 50 years we have kept our clients at the forefront of the decisions we make, and that commitment remains today. We’re thrilled to take Vanguard into its next chapter of helping to give investors the best chance for investment success".
2025
Largest expense ratio cut makes Vanguard history
announces a historic reduction to more than 87 funds across more than 150 mutual fund and exchange-traded share classes. The reductions are expected to save over $350 million to Vanguard investors in 2025. *
*Comparison uses AUM as of 11/2024. There is no guarantee that any individual investor will save money due to the reductions in expense ratios. Figures are estimates and should not be relied on. For illustrative purposes only. See here for details.
2025
Vanguard celebrates 50 years
As we proudly celebrate our 50th anniversary in business on May 1, 2025, we extend our deepest gratitude to you, our clients, partners, and crew, for your continued support of our mission to take a stand for all investors.
This is only the beginning.