MiB: Robin Wigglesworth on the rise of indexes
This week, we interviewed Robin Wiggsworth, a global financial reporter for the Financial Times. He was just published”Trillions: How a group of Wall Street traitors invented index funds and changed finance forever. “This book is full of unexpected surprises about the history of the company.
He explained how indexing started with academic papers, but it later became Jack Bogle’s convenient way to escape noncompetition with Wellington, which prevented him from operating “management” funds. Since index funds are not technically managed, he was able to launch Vanguard All Market funds without breaking the contract.
We discussed why indexing was not a great business at first, and how the pioneer State Street made their advantages disappear; how DFA transformed “factor” academic research into a new form of indexing, and how BGI “expanded” it by lightning. ETF business.
He also explained why BlackRock’s $15 billion acquisition of BGI from Barclays—including all iShares ETFs—is the greatest acquisition in all financial sectors. BlackRock now manages approximately US$9.5 trillion.
You can stream and download our complete conversation, including podcast additional content iTunes, Spotify, Suturing device, Google, Bloomberg, with Acaster. All early podcasts on your favorite podcast host are available Found here.
Be sure to check our Master of Business Next week with Edwin Conway, Global Director BlackRock Alternative Investor (BAI), its total assets exceed 300 billion U.S. dollars. BlackRock’s global alternative businesses include real estate, infrastructure, hedge funds, private equity and credit.
Robin Wiggsworth’s book
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