Vanguard vs. Blackrock Funds: Here’s What the Experts Have to Say

Vanguard Vanguard was established in 1975 by Jack Bogle, who believed that a mutual fund company should not have outside owners. Instead, shareholders of the Vanguard Group own the company's different funds. Thus, the shareholders are the actual owners of Vanguard. 

Blackrock Blackrock started in 1988 with eight people in a single room who shared a determination to put clients' needs first. Blackrock also played an essential role in helping to navigate the financial crisis by working with other firms to value mortgage-backed securities properly.

Index Funds

An index fund is a type of mutual fund or ETF, though the unique aspect always matches the components of an index or specific financial market. Index funds represent a theoretical segment of the market and aim to match the risk and reward of a specific need.

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Exchange-Traded Funds (ETF)

An exchange-traded fund (ETF) typically matches an index similar to index investing. However, an ETF can trade on an exchange, one of the most significant differences between an ETF and an index fund.

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Mutual Funds

Index funds and ETFs are both mutual funds. However, mutual funds can be much broader than passively managed index funds or ETFs. Passively managed funds, like the S&P 500 Index fund, invest in a way that matches the corresponding index.

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Most Popular Vanguard vs. Blackrock Funds

Next, let's look at three more popular Vanguard and Blackrock funds. We'll dig deeper to understand any similarities and differences between their most popular funds.

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S&P 500 ETFs: VOO vs. IVV

The Vanguard and Blackrock funds are the Vanguard 500 Index Fund ETF (VOO), and iShares Core S&P ETF (IVV) are two of the most popular funds. On the surface, these funds are nearly identical, though there are subtle differences between the two.

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Total Stock Market ETFs: VTI vs. ITOT

Next, we'll compare the Vanguard Total Stock Market ETF (VTI) and iShares Core S&P Total U.S. Stock Market ETF (ITOT). Purchasing either of these ETFs will give you some ownership in a tiny sliver of the entire stock market.

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Emerging Market ETFs: VWO vs. EEM Finally, let's look at two emerging market ETFs with the Vanguard Emerging Market ETF (VWO) and iShares Emerging Market ETF (EEM). Unlike the first two ETFs, these stocks have a solid international presence.

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