Vanguard has earned comparisons to Costco from hosts of the "Acquired" podcast for its unique approach to finance. The financial giant, owned collectively by its fund investors, offers low-cost index funds that have driven competitors to cut fees across the industry. Few investors realize how this corporate structure democratized access to low-cost investment options.

Vanguard manages nearly $12 trillion in passive index assets, making it the largest owner of most S&P 500 companies. Combined with other major index-fund firms like BlackRock, State Street and Fidelity, these companies control an estimated 24% of the entire U.S. stock market, fundamentally reshaping corporate governance and shareholder activism.

As Vanguard grows, it shares economies of scale with customers through reduced fees rather than keeping profits. This strategy mirrors Costco's business model but takes it further—Vanguard captures no profits thanks to its corporate structure, creating an unparalleled competitive advantage in finance that has redefined the entire industry's approach to pricing.