Gosling's Grouse: Why passive funds should have name change to 'pactive'

'Find the right strategy at the right time'

Last December, Vanguard founder Jack Bogle - sometimes described as the 'godfather' of passive investing - lamented the way the industry was heading.

In an interview with Bloomberg Markets magazine, he said (and I paraphrase) the way ETFs were being used by many investors (he meant hedge funds, by and large) was almost a misuse of his original vision for passive investing. Launches, record flows & an SEC probe: A closer look at the ETF industry in Q4 His aim, back when he established Vanguard and still true to this day, was to create a vehicle that brings the benefits of the US stockmarket to the average investor at a low cost, so if they stayed patient the long-term gains would not be eroded by high charges. I would almost desc...