The insiders are at it again… and, as always, we’re going to lean on them and turn this shocking news into pocket-filling profits.
Their focus this time is on $734 billion of Vanguard shares.
Thanks to Q2 results, we’ve been handed an opportunity that’s going to turn these Vanguard funds into limitless ATMs. Here’s how…
When we think of insiders, we generally picture people who are either high up in a company or have close personal relationships with company executives.
But the insiders we’re taking notice of today come in a different form.
These insiders have the upper hand on exchange traded funds (ETFs) as opposed to individual stocks, and since these ETFs are made up of multiple stocks, the payouts could be much bigger.
The U.S. ETF market is a $3 trillion market, and Vanguard makes up 25%—or $734 billion—of that market.
The rest of that market is mostly made up of only 4 other fund-providers.
Including Vanguard’s 25%, these 4 other fund-providers manage almost 90% of the U.S. ETF industry.
Blackrock (iShares) owns $1.18 trillion: 39%.
State Street (SPDR) owns $540 billion: 18%.
Invesco (PowerShares) owns $124 billion: 4%.
Charles Schwab owns $78 billion: 3%.
Adding Vanguard’s $734 billion (25%) on top of that shows us the 89% market domination I’m talking about.
Even more staggering, the top 3 providers—BlackRock, Vanguard, and State Street—dominate the market with a combined market share of 82%.
The insiders have revealed all this information in a recent leak of the ETF market’s Q2 2017 report.
But what’s extremely interesting about this is how quickly these 5 companies are accumulating more and more of a chunk of this market.
This rapid growth is where it gets exciting (and profitable).
The ETF industry has swelled by more than 35% over the last year, and it’s all thanks to these 5 fund providers.
But there’s a few reasons I want to focus our attention on Vanguard.
While Vanguard’s growth last year (39.4%) was second to Charles Schwab (67.9%), I see much more opportunity in it than its smaller counterpart.
This opportunity lies in a single Vanguard fund—the Vanguard Information Technology Fund (VITAX).
This large growth fund has returned 447% in the past 9 years. That’s 50% per year!
But all that fantastic historical information isn’t why I’m chewing your ear off about VITAX.
The underlying gold-mine is hidden in the name of the fund…
The Vanguard Information Technology Fund.
I think it’s fair to say that information technology is the closest thing to an immortal sector as you can get.
People are always in need of information and technology is the most efficient vehicle they can get it.
You can be sure that as the U.S. ETF market continues to grow at an insatiable pace, Vanguard’s $734 billion fund will continue to grow as VITAX pushes it into an extremely profitable future.
