Vanguard, Amex Ending INVEST Financial Advice Service

Vanguard Group is ending its INVEST for Amex by Vanguard financial advice service for American Express U.S. card members less than two years after announcing the partnership.

As ThinkAdvisor reported when Vanguard and Amex launched the service in April 2022, the program carried a 0.50% gross annual advisory fee, with Amex receiving up to half as a “promoter fee.”

That 0.50% annual expense surpassed the fees that investors could be charged by going directly to Vanguard, at least one independent expert noted.

Jeff DeMaso, who edits The Independent Vanguard Adviser newsletter, writing Nov. 22 about the program’s end, noted that while Amex cardholders could access Vanguard’s hybrid robo-advisor and earn additional credit card points with INVEST for Amex by Vanguard, ”You could go straight to Vanguard and get a similar [or better] service for 0.20% or 0.30%.”

A Vanguard spokesperson confirmed the offering’s end in a statement Thursday.

“Effective February 29, 2024, Vanguard and American Express will discontinue INVEST for Amex by Vanguard,” the company said, noting the program stopped accepting new enrollments on Nov. 15.

“Vanguard will seamlessly transition current INVEST clients into Vanguard Digital Advisor, an all-digital advice offer, or Vanguard Personal Advisor, a hybrid advice offer. Both services provide high-quality, personalized advice designed to best meet an investors’ needs and preferences,” the statement said.

The firm’s Personal Advisor service carries a 30 basis-point annual advisory fee, while Digital Advisor comes with a roughly 15 basis-point net advisory fee, according to the Vanguard spokesperson.

DeMaso recalled that when Vanguard and Amex first introduced the service, he suggested that those who wanted to invest with Vanguard didn’t need a third party.