Book Review: ‘Trillions’ highlights the rise of a career in finance away from the beaten path
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One of these areas is investment management, which denotes management of portfolio at an institutional level, such as retirement assets, often over longer periods. This industry has gone through a lot of transformation over the decades and one of the best books that chronicles the journey and, in turn, the career learnings for professionals is the book by Robin Wigglesworth, “Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever”
1975 and the historic index fund innovation
The book traces the rise of index funds, a method by which a stock portfolio can mimic a selected section of the stock market, instead of having a portfolio manager actively select stocks to outperform the market. This innovation, called passive funds, transformed the investment industry.
The creator of this segment, John Bogle, had a vision to create a low-cost, diversified investment vehicle that could match the market’s performance instead of trying to beat it. He created Vanguard 500 to replicate the performance of the S&P 500 index.
The book chronicles the various levels at which the funds started working, becoming known globally as passive funds or index funds or exchange traded funds (ETFs). These funds have performed well over time. But, initially, they faced resistance from traditional investors.
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