BOSTON, MA – On October 14, the Museum of American Finance will unveil the display of a rare certificate from the first index mutual fund, in honor of its 50th anniversary. The certificate is on loan from Vanguard and will be on view through April 11, 2027.
“We are proud to add to our exhibits the display of the first index mutual fund certificate during this important anniversary year,” said MoAF President/CEO David Cowen. “We believe it will add to our visitors’ understanding of this important investing tool, as we strive to equip them with knowledge that will help them better their financial lives.”
In his 1951 undergraduate thesis at Princeton University, John C. Bogle (1929-2019) highlighted the crucial role of costs in the long-term returns earned by investors. He identified costs as a drag on the performance of the industry, which was then entirely actively managed. As the founder of Vanguard, Bogle put his thesis to work and created the index fund, now a staple of retail investing.
When Bogle launched the First Index Investment Trust (now called the Vanguard 500 Index Fund) on August 31, 1976, he solved two challenges for individual investors. Professional advisors charged high fees and trading commissions to manage a portfolio of stocks, so investing was mostly restricted to institutions and the wealthy. Indexing—the strategy of simply matching market performance by holding a broad basket of representative stocks—had lower trading costs, but still high fees for calculating and adjusting the benchmark index.
By creating an index mutual fund, Bogle gave individual investors access to an indexing strategy and the advantages of low-cost investing in a mutual fund that allowed them to buy and sell at any time. In later years, Bogle often summarized the concept by saying, “Don’t look for a needle in a haystack; just buy the haystack.”
Despite a slow start, indexing gained adherents because it is an easy-to-understand, cost-effective strategy that can offer diversification, tax efficiency and consistent performance relative to the results of the market.
“Few innovations have done more than index funds to expand access and help investors build wealth over time,” said Greg Davis, President and Chief Investment Officer of Vanguard. “The fundamental promise of indexing remains unchanged: broad diversification, low costs and the power of staying invested for the long term.”
About the Museum of American Finance
The Museum of American Finance, a chartered 501(c)3 non-profit, seeks to improve understanding of the influence of financial institutions and capital markets on the US and global economies, and on individuals’ lives. The Museum is dedicated to educating the public on finance and financial history through exhibits, education programs and public events. An affiliate of the Smithsonian Institution, the Museum seeks to empower individuals of all backgrounds to strive toward financial independence, while encouraging curiosity and discovery. In July 2026, the Museum opened its new home on Commonwealth Pier in the Boston Seaport. All exhibits and programs are free and open to the public. For more information, visit www.moaf.org.
About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly and to give them the best chance for investment success. For more information, visit www.vanguard.com.