Vanguard vs. Blackrock Funds: Is One Better Than the Other

If you’re an owner of an exchange-traded fund (ETF) or index fund, chances are they are from either Vanguard or Blackrock. These two companies are the powerhouses in the industry.

Background: Vanguard vs. Blackrock Funds

Vanguard

Vanguard was established in 1975 by Jack Bogle, who believed that a mutual fund company should not have outside owners. Instead, shareholders of the Vanguard Group own the company’s different funds. Thus, the shareholders are the actual owners of Vanguard.

Background: Vanguard vs. Blackrock Funds

Blackrock

By 1999, Blackrock rapidly grew to $165 billion in assets under management and then went public on the New York Stock Exchange.

Background: Vanguard vs. Blackrock Funds

Blackrock

Blackrock may not be as well known as Vanguard, but the company has more assets under management with more than $9.5 trillion.

Index Funds, Exchange-Traded Funds, and Mutual Funds

Before we get into some of the differences in Vanguard vs. Blackrock funds, let’s first cover some of the terminologies. Even in the personal finance space, I occasionally remind myself of the differences between index funds, exchange-traded funds (ETFs) and mutual funds.

Index Funds, Exchange-Traded Funds, and Mutual Funds

Index Funds

An index fund is a type of mutual fund or ETF, though the unique aspect always matches the components of an index or specific financial market. Index funds represent a theoretical segment of the market and aim to match the risk and reward of a specific need.

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