BlackRock, Vanguard, ETFs | Fox Business

Larry Fink, chairman and CEO of BlackRock, discusses saving money for retirement on “The Claman Countdown.”

Vanguard Group to appoint former CEO of BlackRock as the next leader, putting an outsider in charge of the asset manager for the first time in its nearly 50-year history.

Salim Ramji — who led BlackRock’s exchange-traded funds (ETFs) and index investing until early this year — is expected to soon be named CEO of Vanguard, people familiar with the matter said, assuming the company doesn’t change course at the last minute. The Wall Street Journal earlier reported that Ramji’s nomination was imminent.

Ramji left BlackRock in January after about a decade. He said at the time that he planned to “look for new leadership or entrepreneurial opportunity outside of the company.” Ramji is credited with building BlackRock’s multibillion-dollar iShares ETF business. In his last role, he oversaw two-thirds of BlackRock’s more than $10 trillion in assets under management.

BLACKROCK’S BITCOIN ETF EXPLODES WOWS EVEN LARRY FINK

Pennsylvania-based Vanguard said in February that its CEO Mortimer J. “Tim” Buckley was stepping down and the company was launching a search process for its next leader. He also promoted Greg Davis, previously Vanguard’s chief investment officer, to president.

Ramji will be the first Vanguard chief not to work directly with late founder John C. Bogle. Bogle founded Vanguard in 1974 and launched the world’s first index mutual fund in 1975. He died in 2019, leaving behind an army of loyal customers who call themselves Bogleheads.

John C. Bogle, founder of the Vanguard Group, attends the Bloomberg Most Influential Markets Summit in New York on September 22, 2014. (Peter Foley/Bloomberg via Getty Images)

Ramji joined BlackRock from McKinsey in 2014 to lead corporate strategy. He also led the US wealth advisory business before taking on his most recent role. He was among a half-dozen executives considered potential replacements for co-founder and CEO Larry Fink, although other candidates appear to be in pole position after a recent reorganization.

FED’S POWELL STATES CONFIDENCE INFLATION WILL SLOW IS ‘NOT AS HIGH’ AS BEFORE

Salim Ramji, head of BlackRock US Wealth Advisory, speaks at the Reuters Global Wealth Management Summit in New York on June 16, 2016. (Reuters/Brendan McDermid)

At Vanguard, Ramji will single-handedly take over a colossal asset manager, just behind his former employer. It excelled at collecting new assets but experienced growing pains along the way, including technology issues and complaints about customer service on its brokerage platform.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The company is trying to expand beyond its core business of running ultra-cheap funds that track stock and bond indexes, into the more lucrative business of charging clients for financial advice.

Vanguard keeps its financial performance confidential. Unlike many of its competitors, the company is fund-owned, a setup it says allows it to pass on profits to shareholders in the form of lower fees.

Jack Pitcher contributed to this report.

Source