• Maintain a long-term investment horizon

• Keep it simple

• Rely on rational analysis and decision making

Some of Bogle’s other investment precepts don’t necessarily align with those six principles. As we discussed, Bogle isn’t a big fan of ETFs; nor does he believe fund buyers in the U.S. should invest overseas due to currency risk; he is unsure of the advantages of the small-cap stock premium; lastly, he was never a fan of smart beta.

However, that Bogle has derided smart beta as bogus doesn’t matter, so long as the firm can provide a simple, low-cost, high-quality version of it. Think of it in the same way the firm has embraced ETFs or overseas holdings despite Bogle’s views. Management at Vanguard disagreed with the founder’s dislike of those niches, yet managed to stay true to his philosophy.

And yet anytime a company moves into a new area, there will be some risks involved. But as I see it, they appear to be minor. The company has had a proverbial toe in the water for a while; this looks like a circumspect expansion rather than a headlong dive.

For an example of Vanguard’s measured approach, consider its entry into the market for robo-advisers, the online-only algorithmically driven asset allocators. Vanguard watched the market closely for years. It studied robo firms such as Betterment LLC and Wealthfront Inc. as they scaled up over the course of the past decade to billions of dollars in assets under management. It observed pricey -- at least by Vanguard standards -- acquisitions by BlackRock Inc. (FutureAdvisor), Aviva (Wealthify), Invesco (Jemstep), TIAA-CREF (MyVest) and others.

After all that, it came to the conclusion that building its own robo-adviser and converting an existing online-only brokerage site made the most sense. Two years ago, it introduced Vanguard Personal Advisors with a modest $8 billion in assets under management; it now has about $100 billion. The firm makes no bones about believing this could be a $1 trillion business someday. No other robo-adviser is remotely close in terms of assets managed this way. When it comes to robos, there is Vanguard, and then there’s everyone else.

Expect Vanguard’s push into smart beta to follow a similar path, relying on organic building rather than acquisitions. Look also for the so-called Vanguard effect, in which its low-cost approach drives down fees throughout the market.

Vanguard’s entry should certainly give those currently profiting from the smart-beta trend some pause. But the upshot is likely to be a win for investors.