In Vanguard’s view, crypto is more of a speculation than an investment. This is at the root of our decision to not offer crypto products, whether our own or others. With equities, you own a share of a company that produces goods or services, and many also pay dividends. With bonds, you get a stream of interest payments. Commodities are real assets that meet consumption needs, have inflation-hedging properties, and can play a role in certain portfolios. While crypto has been classified as a commodity, it’s an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.

The same line of thinking applies to our brokerage platform. In 2019, we decided to remove access to leveraged and inverse funds and ETFs. These products are often misunderstood and misused by investors and can magnify losses. Similarly, in 2022, we stopped offering most over-the-counter stocks, which are prone to high risk, low liquidity, and potential fraud.