Tim Buckley, Chairman and CEO of Vanguard, the second-largest asset manager and supplier of exchange-traded funds (ETFs) in the world, joined CNBC’s “The Exchange” to discuss the status of the stock and bond markets as well as investor behavior in the face of rising interest rates.
Speaking from Vanguard’s Pennsylvania headquarters, Buckley advised investors amidst heightened market volatility and economic uncertainty. He also explained why his company, the second-biggest producer of ETFs, has no interest in Bitcoin.
Buckley’s main advice to investors was to “stay the course,” a straightforward advice that has worked well in different market conditions despite its seeming banality. He emphasized the significance of the core ideas of investment, which remain unchanged in the face of market fluctuations.
As stocks put the “wind in your sails” and let investors profit from company earnings growth, Buckley emphasized the need to have stocks in an investing portfolio for growth. Buckley says it’s folly to try to time the market.
In response to a question regarding the possibility of a Bitcoin or cryptocurrency ETF, Buckley said that Vanguard would not pursue a Bitcoin or ETF, just as they do not use gold as an asset class for their clients. Bitcoin is not one of the asset classes that Vanguard focuses on because it is not part of a long-term portfolio.
Vanguard’s decision not to pursue a Bitcoin ETF is polar opposite to Fidelity Investments and BlackRock Inc. They are both reportedly in talks with regulators about such product which make it easier for investors to gain exposure to Bitcoin.
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