First Index Fund
About First Index Fund
The first index fund available to individual investors was launched by Vanguard on August 31, 1976. John Bogle created the First Index Investment Trust, tracking the S&P 500. It was initially mocked as Bogle folly and un American. The fund started with just 11 million in assets. Wall Street firms predicted it would fail because investors wanted to beat the market, not match it. By 2024, the fund, renamed Vanguard 500 Index Fund, managed over 1 trillion. Bogle proved that low costs and broad diversification beat most active management over time. The index fund was called the most successful financial innovation of the 20th century.
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