Greg Davis, Vanguard’s Chief Investment Officer
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Vanguard's view on investing in cryptocurrency

Vanguard shares its view on investing in cryptocurrency.
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May 11, 2022
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In this installment of “Getting social with Vanguard leaders,” Chief Investment Officer Greg Davis weighs in on cryptocurrency in today’s market through the lens of Vanguard’s enduring investment principles.

Although we see merit in supporting the technology behind cryptocurrency, we feel it’s best to stick to the investing principles that have made Vanguard a reliable choice for investors. Above all else, Vanguard seeks to protect our clients’ assets. So when it comes to cryptocurrency, we take the same approach and steer our clients toward time-tested products.

Why? Because our investors are also owners.* Part of Vanguard’s principled approach is making your financial well-being our priority.

Vanguard helps clients grow healthy portfolios.

Vanguard helps clients grow healthy portfolios.

Transcript

We always go back to what we see as our enduring investment principles. And they go to basically investing in stocks, bonds, and cash. And, ultimately, the challenge we have with cryptocurrency is that it doesn't really have an intrinsic value. It's more of a speculative asset class. And so on the one side, again, it doesn't fit from an investment perspective, but the technology behind it is quite compelling. We actually use the blockchain technology today when we get our index data from one of our major providers because it's more efficient, it reduces risk, it just makes a more operationally attractive way of receiving index data. So, again, the technology we think has a lot of value and merit, but, again, investing in crypto, we think that's more of a speculative asset. We don't think that's a great way to construct a long-term portfolio for clients.

*Vanguard is investor-owned, meaning the fund shareholders own the funds, which in turn own Vanguard.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Investments in bonds are subject to interest rate, credit, and inflation risk. Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

For more information about Vanguard funds or Vanguard ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. 

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