For investors who have $100,000 to $1 million-plus at Vanguard, the news is good: reduced costs for brokerage and planning, broader services, and for the highest bracket, access to some mutual funds that had been closed. For advisors, perhaps this is yet another layer of competition for customers and assets.
Valley Forge, Pennsylvania-based Vanguard wants to attract a higher share of investors’ assets by “making it more rewarding for investors to place most, if not all, of their investment eggs in Vanguard’s basket,” according to John Brennan, CEO, in a September 5 announcement. “The ‘all-in’ costs of keeping a financial relationship with Vanguard are extraordinarily low, and we believe our value proposition is unmatched in the financial services industry.”