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Mutualfund giant Vanguard Group offers over 60 equity-focused exchange-traded funds (ETFs). Some ETFs invest in momentum and others are more balanced. The following table shows the P/E ratios of top payment processors and investmentbanks -- which are all top 10 holdings in the Vanguard Financials ETF.
Jason Moser: I think it's with Goldman Sachs, Goldman is not the first bank I think that comes to people's minds when we think about consumer banking. Goldman, it's an investmentbank. Jason Moser: Well, like I said, Goldman is an investmentbank. What are they reacting to?
At one point in time, Jack Bogle, founder of, of Vanguard was chairman of their mutualfunds. He is uniquely situated because he has run both public mutualfunds as well as privates, including late stage venture private equity credit down the list. Really interesting. Michael Carmen: 00:01:38 [Speaker Changed] Sure.
When we look at the broader financialservices landscape, we're certainly not back to what we would consider normal levels in the capital markets overall, but we did see improvement. This was driven by higher ETF and mutualfund AUM benefiting from both market appreciation and net inflows. Thank you for the question.
All this opens the door for the activities that big banks love, which is, they like to make money off of deposits, but when that equation is upside down and interest rates are high, they want to do this stuff. The trading investmentbanking activities have really stood out to me among all these big banks as a propellant for earnings.
Investmentbanks were not really a known concept in the area where I grew up. I lined up a bunch of job interviews with a variety of banks. And again, I ended up in the financialservices audit practice at KPMG. So I got to know banks a little bit. I didn’t really know much about the world of finance.
I mean, at first, I got out of undergrad, and a degree in finance coming out of a small college at the time, Quinnipiac College, the gigs I was offered were essentially customer service jobs at mutualfunds, call service, manning the phones, which I was no stranger to. I didn’t see the real path ahead.
Most guys and gals who get into the business of working at a hedge fund, never mind you know founding and running one, you I think there’s a pretty typical track where they’re finance majors at top schools, they work at an investmentbank or an advisory bank, sometimes at a law firm, and then they make their way into the investing realm.
RITHOLTZ: So you also mentioned you’re at the intersection of three businesses; education, publishing, and financialservices that are all inefficiently run and deserve to be disrupted. And can we not say that financialservices haven’t been wildly disrupted over the past 40 years? DAMODARAN: Has it, though?
Vanguard recently executed its largest cut to investment fees in its roughly five-decade existence. The largest investment management firm in the world lowered the expense ratio on 168 of its mutualfunds and exchange-traded funds (ETFs). The fund also focuses on dividend payers and as a result has over a 4.6%
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