The Vanguard Digital Advisor is now moving beyond its original pilot to an expanded one, allowing current Vanguard brokerage clients as well as anyone who signs up for a Vanguard brokerage account to access the service. A $3,000 asset minimum is required.
The expanded pilot is “part of the test and learning development process” for the robo-advisor. according to a spokesman.
“We will seek feedback from clients as we expand and enhance the service’s functionality and capability in advance of making it available to all investors later this year,” he said. On its website, Vanguard Digital Advisor identifies three forthcoming features: helping clients prepare for emergencies, manage debt, and manage extra cash — invest or pay down debt.
As described in its original brochure, the Vanguard Digital Advisor will have discretion to invest client assets in four core building block ETFs for an all-in expected fee of 20 basis points. That’s cheaper than most all-digital advisory services, and its $3,000 minimum is smaller than that of most robo-advisors, though not all.
Digital Advisor will recommend varying combinations of the four Vanguard ETFs — the Total Stock Market, Total International Stock Market, Total Bond Market Index and Vanguard Total International Bond Index ETFs (collectively referred to as the “Four Totals”) — based on an investor’s financial profile, investment preferences and time horizon, risk tolerance, goals and current asset mix.