Vanguard Swot Analysis Essay

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Name: Xiaodong ZHAO
Fin 4710 PROF. J. C. FRANCIS
Vanguard is one of the largest investment firm in the world, founded on May 1st, 1975, which offers mutual fund and other financial services to the individual investors and financial professionals. They have about 15,000 employees in the United States with the headquarter located in Malvern, Pennsylvania. The company was first founded by John C. Bogle as part of Wellington Management Company in 1966. Later Bogle created the investment trust fund (Vanguard 500 Index Fund) approved by Wellington Management Company. The current CEO of the firm is Mortimer J. Buckley. The mission statement of Vanguard is “To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.” The company has the net assets of $421.09 billion and total assets under management of $4.5 trillion as of September 30, 2017. The annual turnover rate is 4%. The Overall portfolio composition percentage is 99.61% of stocks and 0.39% of cash. Until now Vanguard has over 20 million investors around the world, and have about 175 types of different funds in the United States including the annuity portfolios. The funds are managed by the professional management team of Vanguard, which led by CEO Mortimer …show more content…

The price of VFINX was from $27.49 per share in 1987 to $242.25 per share in 2018. The stock price increased 881.23% for the past 30 years. The annual return of the fund is following very closely with the market index over the past 30 years. The lowest annual return was in the year 2008, during the recession, which was -37.02%. The highest annual return was in year 1995, which was 37.35%. I think VFINX index should be managed passively, because VFINX are following the average market performance, and VFINX itself is an index fund. By passive investment strategy, we are able to minimalize the long-term cost and earn a stable long-term

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