An asset manager selling index funds has about the same amount of assets under management as the entire hedge fund industry.
Vanguard reached $3 trillion in global assets under management for the first time, a company spokesman said Thursday, a record for the country’s largest mutual fund firm.
Vanguard has been raking in assets as investors pour money into passively managed products rather than investing in funds run by stock pickers.
So far this year through August, passively managed stock funds have seen $57 billion of inflows, while investors pulled $59 billion from stock funds.
Vanguard has surpassed Pacific Investment Management Co. in the amount of bond mutual fund assets it manages, and its stock market index fund has become the world’s largest mutual fund, according to Morningstar.
