Why Choose Vanguard | Vanguard (2024)

FAQs

Why should you choose Vanguard? ›

Vanguard isn't owned by shareholders. It's owned by the people who invest in our funds. Our owners have access to personalized financial advice, high-quality investments, retirement tools, and relevant market insights that help them build a future for those they love. That's the Value of Ownership.

At Vanguard you will build meaningful connections with others who are interested in your development and have opportunities to enrich your work experience. Vanguard values the diverse strengths, backgrounds, experiences and identities that crew bring to the organization.

Working at Vanguard presents opportunities to make a difference every day—to clients looking forward to retirement and to crew members looking for innovative ways of working or looking to develop their expertise and skills. You can volunteer for a cause you believe in or take time to mentor a new colleague.

Leader in low-cost funds: The company has a solid reputation for the well-below-average expense ratios on its index funds and exchange-traded funds. For long-term investors looking to pair a buy-and-hold strategy with the lowest-cost offerings, it's hard to beat the service and selection found with Vanguard.

All Vanguard Brokerage clients pay $0 commission to trade ETFs (exchange-traded funds) and stocks online. You also have access to more than 160 no-transaction-fee mutual funds from Vanguard and more than 3,000 funds from other companies.

Low cost, uncomplicated investing

Vanguard's scale and ownership structure help us keep costs low. With no shareholders to please, we can return our profits to investors through lower costs. As we gain more investors, and our assets under management grow, we can reduce expense ratios further for our investors.

Vanguard is owned by its funds, which in turn, are owned by their shareholders. With no other parties to answer to and therefore no conflicting loyalties, Vanguard makes decisions, including the decision to keep investing costs as low as possible, with clients' interests in mind.

Vanguard is well-known for its pioneering work in creating and marketing index mutual funds and ETFs to investors. Indexing is a passive investment strategy that seeks to replicate, rather than beat, the performance of some benchmark index such as the S&P 500 or Nasdaq 100.

Vanguard is one of the world's most respected investment management companies, offering a broad selection of investments, advice, retirement services, and insights to individual investors, institutions, and financial professionals.

What differentiates Vanguard? ›

Vanguard is designed to be different: our funds own our company, and investors like you own our funds. This means that as new economies of scale help us lower costs, those benefits are passed directly to you.

To take a stand for all investors, to treat them fairly and to give them the best chance for investment success.

"Beginner investors should consider Vanguard funds for their low costs, diversification across asset classes and regions, simplicity, and robust investor education resources," August says.

If you are looking to create a diversified, ETF-based portfolio that you will periodically rebalance—and not much else—then Vanguard is a good fit. If you are an active investor or trader, however, Vanguard's limited tools and asset selection will likely be a non-starter.

With a sound and sensible investment approach as a foundation, Vanguard began its march to industry leadership with a series of audacious strokes—introducing the first index mutual fund, adopting a commission-free distribution system, and internalizing fixed income management.

If you are looking to create a diversified, ETF-based portfolio that you will periodically rebalance—and not much else—then Vanguard is a good fit. If you are an active investor or trader, however, Vanguard's limited tools and asset selection will likely be a non-starter.

While both institutions offer robo-advisors, Vanguard's Personal Advisor Services, which is available to clients who can meet a $50,000 account minimum, offers a little more hands-on investment guidance and assistance with portfolio construction. Vanguard also has slightly lower expense ratios on its index funds.