John C. Bogle founded Vanguard in 1975. Today, the company offers various financial products and services, including retirement accounts and brokerage services. It is renowned for its investor-first approach, which focuses on keeping costs low for its clients, who are shareholders in the company.
As of May 2024, Vanguard manages more than $9.3 trillion in global assets, up from $8.5 trillion in 2021. These figures show how Vanguard is one of the largest asset management firms in the world, with many investors considering Vanguard as a reliable option for building diversified portfolios.
Who are Vanguard's competitors?
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
|---|---|---|---|
| Vanguard | 1975 | Malvern, PA | $7.2 trillion |
| Edward Jones | 1922 | St. Louis, MO | $2 trillion |
| Fidelity Investments | 1946 | Boston, MA | $13.7 trillion |
| Charles Schwab | 1971 | Westlake, TX | $7.38 trillion |
| Merrill Lynch (Merrill) | 1914 | NYC, NY | $2.75 trillion |
| BlackRock | 1988 | NYC, NY | $10.5 trillion |
While Vanguard is a giant in investment management, it faces competition from several other financial firms.
5 alternatives to Vanguard
In this section, we'll explore some of these Vanguard competitors and see what they offer as potential Vanguard alternatives.
1. Edward Jones
Edward Jones is a financial services firm known for its personalized approach to investment advice. Founded in 1922, Edward Jones has grown to have over 15,000 locations across the United States and Canada.
Assets under management:
$2 trillion
Fee:
0.5%-1.35%
Fee structure:
Fee-based
Minimum account sizes:
$5,000 or $25,000 depending on account type
Unlike Vanguard, which operates as a mutual company, Edward Jones is a private partnership. The firm specializes in tailoring financial advice through its network of local advisors, focusing on long-term investment strategies for individual investors.
With $2 trillion in assets under care as of the end of March 2024, Edward Jones is a strong Vanguard alternative for those seeking personalized service and face-to-face interaction with financial advisors.
2. Fidelity Investments
Fidelity Investments is a leading financial services corporation known for its broad range of investment products and services. Founded in 1946, it has its headquarters in Boston, Massachusetts, and numerous offices worldwide.
Assets under management:
$14.1 trillion
Fee structure:
Fee-only & fee-based
Fee:
0.2%-1.5%
Minimum account sizes:
$50,000
As a private company, Fidelity manages over $14.1 trillion in assets, of which $5,4 trillion are discretionary assets. This makes the company one of the largest asset managers globally.
Fidelity specializes in retirement planning, wealth management, and brokerage services. It is also renowned for its innovative technology and extensive research tools.
These characteristics make Fidelity a popular Vanguard alternative for investors seeking comprehensive financial services and advanced trading platforms; their vast array of investment options makes Fidelity a formidable competitor of Vanguard.
3. Charles Schwab
Charles Schwab, a major financial services firm recognized for its brokerage and wealth management services, was founded in 1971. Since its founding, Charles Schwab has grown to have a significant presence, with over 400 branches across the United States and international locations.
Assets under management:
$7.38 trillion
Fee:
0.80% and decrease at higher asset levels
Fee structure:
Fee-based
Minimum account sizes:
$500,000
As a public company, Charles Schwab is traded on the New York Stock Exchange under the SCHW ticker and has a market capitalization of $115.89 billion as of 2 August 2024. Charles Schwab offers an array of financial products, including low-cost trading, retirement accounts, and investment advisory services.
Charles Schwab is a strong competitor and popular Vanguard alternative, known for its user-friendly platforms, comprehensive financial planning services, and competitive pricing.
4. Merrill Lynch
Merrill Lynch, now branded Merrill, is a renowned wealth management division of Bank of America offering comprehensive financial services and investment management.
Assets under management (AUM):
$2.75 trillion.
Fee:
Advisor fees up to 1.75%, with 0.45%-0.85% for guided investing.
Fee structure:
Percentage of assets managed, fixed rates for advisory accounts, and tiered rates for managed strategies.
Minimum account sizes:
Varies by service, with benefits starting at $20,000.
Charles E. Merrill founded the company in 1914 in Manhattan, and it has since become a vast network of offices across the United States and over 40 countries.
As part of Bank of America, which is publicly traded under BAC, Merril plays a vital role in BAC's operations and contributes to its market capitalization. Merrill provides personalized advice, retirement planning, and portfolio management services.
As a Vanguard alternative, Merril appeals to investors looking for in-depth financial guidance and a global perspective, positioning itself as a significant competitor.
5. BlackRock
BlackRock is the world's largest asset management firm (followed by Vanguard), known for its extensive range of investment products and solutions. Founded in 1988, BlackRock operates globally with offices in over 30 countries and clients in more than 100 countries.
Assets under management:
$10.5 trillion
Fee:
0.09%-2.50%
Fee structure:
Fee-based
Minimum account sizes:
$250,000 to $1 million
As a publicly traded company under BLK, BlackRock has a market capitalization of $127,34 billion and manages over $9.101 trillion in assets. BlackRock specializes in offering diverse investment products, including iShares ETFs, mutual funds, and risk management services.
Investors seeking a wide array of investment options and advanced risk management tools favor BlackRock, which is a major competitor of Vanguard.
"Experience matters, so check the firm’s track record in handling clients with similar needs.
Transparency is also key, so ensure they clearly explain their fees and services. Choose a firm or individual who aligns with your financial goals and communicates effectively, as a strong client-advisor relationship is essential for long-term success.
Lastly, a good financial advisor relationship is ideally a long-term one, so try to find one you'll be comfortable working with through the most important periods of your life."
Which is the best financial advisory firm for me?
The best financial advisor firm ultimately depends on what your needs are as a client.
Any of the above alternatives to Vanguard will likely meet your needs, but some will be more compatible with you than others. You can use the factors listed below to determine which you should choose.
- Budget – Naturally, each firm has its own pricing systems to consider. The bigger your budget, the more services and expert guidance you can afford.
- Communication style – People typically work with their chosen financial advisor over a number of years throughout all of life’s big events. Therefore, it’s key that you choose someone you get along with and with whom you can easily communicate.
- Service requirement – Some firms specialize in certain services, so it's best to pick one with a high level of experience in your field of interest.
- Advice delivery – Financial advisor firms have different communication and customer management styles. Pick one that delivers advice in a way you find comfortable and easy to understand.
- Experience level – If you need high-level advice and input, you’ll want to opt for a firm with more experience in its field. Smaller, less seasoned companies can easily handle lower-stakes financial management like savings and retirement.
Get expert financial advice
Vanguard is a leader in investment management but faces stiff competition from several major financial advisory firms offering attractive alternatives. These competitors of Vanguard provide varied options for investors.
Unbiased can match you with a financial advisor for expert financial advice tailored to your needs.
Frequently asked questions
Is Vanguard a safe place to keep your money?
Securities and money market funds held in a Vanguard Brokerage Account are protected by SIPC coverage.
Who is Vanguard's biggest competitor
Vanguard's biggest competitors include:
- JPMorgan Chase & Co: 311,921 employees, $239.4 billion in revenue
- FMR LLC: $28.2 billion in revenue
- BlackRock Inc: 19,300 employees, $17.9 billion in revenue
- T. Rowe Price Group Inc: 7,906 employees, $6.5 billion in revenue
- LPL Financial: 9,000 employees, $12.9 billion in revenue
>Learn more about how Vanguard ranked on our list of best financial advisors and top-rated investment firms.
How does Vanguard compare to other financial advisory companies?
We’ve compared Vanguard with other financial advisor companies. Find out more here:
- Vanguard vs Blackrock
- Vanguard vs Fisher
- Vanguard vs Edward Jones
- Vanguard vs Schwab
- Vanguard vs. Betterment
- Vanguard vs Facet
- Vanguard vs Fidelity
- Vanguard vs Mercer
- Vanguard vs Betterment
- Vanguard vs Wealthfront
- Vanguard vs LPL Financial
Vanguard Personal Advisor vs. Vanguard Digital Advisor
Vanguard Digital Advisor is suitable for investors looking for a cost-effective, automated investment solution with minimal human interaction.
Vanguard Personal Advisor caters to those who prefer personalized financial planning and direct communication with financial advisors.
What services does Vanguard offer?
Vanguard provides advisory services for investors at every level:
- Vanguard Digital Advisor – A robo-advisor for beginners; $100 minimum.
- Vanguard Personal Advisor – Digital tools plus human planners; $50,000 minimum.
- Vanguard Personal Advisor Select – Dedicated CFPs for high-net-worth clients; $500,000 minimum.
- Vanguard Wealth Management – Comprehensive planning for ultra-wealthy investors; $5 million minimum.