arcticpineapplecorp. wrote: ↑
Mon Jan 22, 2018 7:20 pm
Good to hear. And a good reminder of the difference between an investment and a speculation.
"You will never see a fund from Vanguard on bitcoin," Buckley told CNBC's Bob Pisani on Monday. "We tend to stay away from assets that don't have underlying economic value. They don't generate earnings or cash flows."
https://www.cnbc.com/2018/01/22/vanguar ... om-us.html
"The bitcoin – its value is based off of scarcity – and an artificial scarcity that's out there," he explained. "It's really tough to imagine where the long-term return comes from other than speculation."
Buckley compared the lack of fundamental economic value in bitcoin to a lack of fundamental value in gold, an asset class which Vanguard also avoids.
One of the things I like about Vanguard is a commitment to what is best for the client.
Vanguard won't sell you a product they think is bad for you, even if you want it.
Even the Precious Metals fund, anomalous in some ways, has a purpose-- PM & PM stocks have a degree of hedging against bad financial shocks.
For most fund managers, the tension between the business of fund management and the management of funds grows-- as a business they need to expand, increase fee revenues, etc.
VG more so than any other fund management firm, because of its history and its unusual structure, strives not to fall into that trap. TIAA CREF was perhaps like that, but seems to have changed in recent years.
(note I am not US based, and am not currently a direct client of VG, the ETFs I hold are all ishares).
They don't think cryptocurrencies are a good investment, and they see the obvious bubble characteristics in the market for them, now. Thus, they don't propose to go down that route.