@article {Bogle133, author = {John C. Bogle}, title = {{\textquotedblleft}Big Money in Boston{\textquotedblright}: The Commercialization of the Mutual Fund Industry }, volume = {40}, number = {1}, pages = {133--146}, year = {2013}, doi = {10.3905/jpm.2013.40.1.133}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Over the course of his six-decade-plus career, Vanguard founder John C. Bogle has witnessed{\textemdash}and been an active participant in{\textemdash}sweeping changes in the mutual fund industry. In the early days, {\textquotedblleft}Boston Trustees{\textquotedblright} usually managed a single fund, with a focus on the long-term, prudent investment, and stewardship. Today the industry is dominated by giant financial conglomerates running fund supermarkets, focused on short-term, more aggressive strategies, and salesmanship. Four major changes drove this change in the mutual fund culture: 1) The industry{\textquoteright}s incredible growth. 2) Aggressive, high-risk investment strategies. 3) Product proliferation. And 4) conglomeratization. Yet one innovation stood firm against that rising tide{\textemdash}the index fund. In recent years, investor cash inflows have poured into {\textquotedblleft}passively-managed{\textquotedblright} index funds while {\textquotedblleft}activelymanaged{\textquotedblright} equity funds have endured substantial outflows.TOPICS: Portfolio management/multi-asset allocation, passive strategies, mutual fund performance}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/40/1/133}, eprint = {https://jpm.pm-research.com/content/40/1/133.full.pdf}, journal = {The Journal of Portfolio Management} }