Everything on Corporate Structure & Strategy

Vanguard’s cooperative ownership model aligns firm interests directly with fund investors, removing shareholder dividend pressure and enabling sustained cost leadership across the asset management industry.

Impact: Eliminates principal-agent conflicts, allowing asset managers to prioritize fee reductions and long-term client returns over short-term profit extraction.

— from Passive Investing Strategy: Costs, Diversification, and Market Efficiency · Asset Class· Mar 24, 2026