How do companies like Blackrock and Vanguard make money?
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I own shares in a Vanguard ETF. This fund has hundreds of companies in it and charges me a .01% fee to manage it. For me the .01% fee is well worth the hassel of having to purchase these hundreds of shares myself (nor do I have the capital to buy entire shares of all of them).
People invest billions of dollars into this fund and suddenly that .01% is a nice return for Vanguard.
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