Vanguard at a glance
Vanguard is a financial services company founded by Jack Bogle in 1975.
Founded: 1975 by Jack Bogle
Assets Under Management (AUM): $10.1 trillion globally
Known For: Low-cost index funds, ETFs, and pioneering passive investing
Average Fund Expense Ratio: 0.037% (well below industry average)
The company currently has more than $10.1 trillion under management globally. They’re known for pioneering low-cost index funds and pushing down administration costs across the industry. Currently, the average expense ratio of a Vanguard fund is 0.037%, which is very competitive.
While Vanguard is known for its low-cost index funds and investment offerings, it also offers financial services in key areas, such as the following:
| Core services | Key offerings |
|---|---|
| Brokerage accounts | DIY investing for mutual funds, ETFs, stocks, CDs, bonds, etc. |
| Retirement accounts | IRAs, 401(k)s, 403(b)s, SEP, SIMPLE |
| Employer 401(k) plans | Retirement benefits and administration |
| 529 and Custodial accounts | College Savings Plans (529), Uniform Gifts to Minors Act (UGMA), Uniform Transfers to Minors Act (UTMA) |
| Advisory and wealth management | Vanguard Digital Advisor® (robo-advisor), Private Advisor Services, Wealth Management |
| Cash Management | Vanguard Cash Plus Account |
| Trust and Estate Services | Help creating trusts, services to manage and transfer wealth |
What does Vanguard do?
Vanguard’s core services can be categorized into three main areas: ways to invest, investment products, and accounts and plans.
Ways to invest
Vanguard offers customers a number of ways to invest, whether it’s DIY investing in a brokerage account or a multi-faceted wealth and retirement planning strategy. You may also already have a retirement account with Vanguard from your employer.
Examples include:
- Wealth advisory services, such as Vanguard Personal Advisor, Vanguard Personal Advisor Select, and Vanguard Wealth Management.
- Robo-advisor investing with Vanguard Digital Advisor.
- Self-directed investing with Vanguard accounts.
Investment products
Vanguard offers a wide variety of investment products. Many of the most cost-efficient investments were created by Vanguard.
Examples include:
- ETFs
- Mutual funds
- Stocks
- Money market accounts
- CDs
- Bonds
- Target-date retirement funds
- Index funds
- Cash investments
- All-in-one funds
Accounts and plans
Finally, Vanguard offers different types of accounts where you hold your investments.
Examples include:
- IRAs: Tax-advantaged retirement accounts that hold investments.
- Brokerage accounts: An account for holding investments; taxable.
- Cash Plus: A cash holding account that earns higher interest than a traditional bank account.
- 529 savings: A tax-advantaged investment account for college funds.
- Custodial accounts: Accounts opened on behalf of a minor and managed by an adult. Also known as a UGMA/UTMA account.
- Small business retirement accounts: Retirement accounts unique to small businesses that have higher contribution limits and some tax advantages.
- 403(b) accounts: Retirement accounts for the non-profit and education sector.
Vanguard’s breadth of services is designed for managing money, especially when it comes to investments. There are some services you won’t find at Vanguard, such as checking accounts and in-person branch services.
What are the pros and cons of Vanguard?
Using Vanguard to invest comes with some pros and cons to consider.
Pros of Vanguard:
- Low fees: Lower fees on quality financial services and products translate to more money in your pocket.
- Low minimums: Customers have access to fractional shares in Vanguard investments, so you can start investing with as little as $1. Digital Advisor is available to customers with as little as $100.
- Strong reputation: Vanguard is one of the most highly-regarded financial services companies in the business.
- Access to robo-advising and human advisors: Vanguard offers low-cost options for advisory services when it comes to your money, whether through their robo-advisor or a financial professional.
Cons of Vanguard:
- Customer Service: Vanguard is weaker than rivals Fidelity and Charles Schwab when it comes to customer service. Users report mistakes, long wait times, and inadequate resolutions. These experiences are bad enough for some to consider moving their money to other brokerages.
- Sub-optimal User Experience: Vanguard’s website and mobile app are basic, at best. Customers report frequent bugs, crashes, trade failures, and navigation issues. The app doesn’t offer many of the features offered by competitors. Day traders, in particular, may feel frustrated by the lack of research tools and execution of trade orders.
- High minimums for advisory services: If you want to have your portfolio professionally managed by a dedicated CFP for Vanguard Personal Advisor Select, you’ll need to have at least $500,000 invested with Vanguard.
- Cash Plus account is limited: Vanguard doesn’t offer banking services with the Cash Plus account. There is no debit card, checking, or cash management.
Vanguard fees: How much does Vanguard cost?
Vanguard fees are minimal or nonexistent for many services, especially when it comes to online trading. However, you will see some other fees. At a glance, here’s what you can expect:
| Investments | Fee |
|---|---|
| Stocks | $0 |
| ETFs | $0 |
| Vanguard mutual funds | $0 |
| No-transaction-fee (NTF) mutual funds | $0 |
| Transaction fee (TF) mutual funds | $20 |
| Options | $0 + $1 per contract fee |
| U.S. Treasuries | $0 |
| CDs, except secondary market CDs | $0 |
| Municipal bonds | $1 per $1,000 face amount ($250 max) |
| Mortgage-backed securities | $35 |
| Unit investment trusts (UITs) | $35 |
| Account closure and full transfer out fee | May charge $100 |
| Broker-assistance fee | $25 |
| Foreign securities transactions | $50 |
| Accounts* | |
|---|---|
| Brokerage account service fee | $25 annually (waived in some cases) |
| 403(b) | $5 per month |
| Traditional IRA | $25 per account |
| Roth IRA | $25 per account |
| SEP-IRA | $25 per account |
| Education savings/UGMA/UTMA | $25 per account |
| Cash Plus | $0 |
| Vanguard 529 | N/A |
| Advisory services | |
|---|---|
| Vanguard advisory fees | 0.20% to 0.35% AUM |
Note: Service fees on accounts can be waived when customers sign up for e-delivery of statements and other notices. It may also be waived for customers with more than $5 million invested with Vanguard.
What is Vanguard’s minimum account size?
While some accounts have a $0 minimum, there are investments and advisory services that do have a minimum requirement.
Vanguard's minimum requirements are as follows:
Vanguard Investment Minimum
- Mutual funds
- Target Retirement Funds and STAR Fund – $1,000
- Admiral Shares – $3,000
- ETFs
- Stocks – Cost of the share price
- Bonds – Cost of the bond
- CDs – Cost of the CD
Vanguard Account Minimum
- Open a brokerage account – $0
- Open an IRA, 529, SIMPLE, SEP – $0
- Open a Cash Plus account – $0
Vanguard Advisory Service Minimum
- Vanguard Digital Advisor – $100
- Vanguard Personal Advisor – $50,000
- Vanguard Personal Advisor Select – $500,000
- Vanguard Wealth Management – $5 million
Who should choose Vanguard?
Vanguard is a respected financial services company and is great for beginners and pros alike.
Vanguard investments offer exceptional value, with minimums that are attainable for many investments.
Unfussy customers may be pleased with Vanguard’s investment performance rather than a seamless user experience. Just be prepared to be disappointed if you need customer service or want comprehensive analytical tools for investments.
Vanguard: Is it secure?
Vanguard utilizes encryption, SSL validation, username and password protection, account activity alerts, security questions, a time-out feature, and masking digits to protect bank account information.
Vanguard also uses a redundant data center to ensure client data is never lost.
When it comes to fraud, Vanguard’s Customer Protection Guarantee offers reimbursements for unauthorized activity in your accounts (subject to eligibility).
Vanguard: Customer service
To reach Vanguard customer service, you’re directed to the following numbers by phone. There are different phone numbers based on your relationship to the company.
- Personal investors: Call 877-662-7447, Monday through Friday, 8 am to 8 pm, ET.
- Retirement plan participants: Call 800-523-1188, Monday through Friday, 8:30 am to 9 pm, ET.
- Institutional investors: Call 800-523-1036, Monday through Friday, 8:30 am to 9 pm, ET.
- Nonprofit organizations: Call 888-888-7064, Monday through Friday, 9 am to 5 pm, ET.
- Financial advisors: Call 800-997-2798, Monday through Friday, 8:30 am to 7 pm, ET.
Note: There are no physical branches or 24/7 phone support.
Vanguard reviews: What are real customers saying?
Vanguard reviews are generally positive, but the same complaints surface. These complaints center on poor customer service experiences and flaws in the app and website.
Vanguard customers say the website and mobile interfaces aren’t sophisticated and lack certain views or functions they believe an investing app should have.
Customers note that Vanguard lacks analytical and educational tools to assist customers with their investments. Some users complain that Vanguard’s customer service isn’t effective or timely and recommend Fidelity or Schwab for better customer service.
Some users say they use Vanguard for the funds and passive index fund investing. One user noted that his Vanguard sweep account was earning significantly more than his Schwab sweep account, which he attributed to the Vanguard account's ownership of an investor-owned mutual fund.
Vanguard: Mobile app
Vanguard’s mobile app is functional, but basic.
You can see your accounts and balances at a glance, but customization and functions are limited. It can:
- See accounts and balances at a glance
- Manage your portfolio and asset allocation
- Set up automated investing
- Buy and sell investments, such as mutual funds and ETFs
- Deposit and withdraw funds
- Research stocks and funds
- Create watchlist
- Find help
Vanguard caters to buy-and-hold investors. If you’re trading options or any other sort of day-trading activity, you’re probably better off investing elsewhere.
Vanguard is rated 4.7 out of 5 stars in the App Store and 3.4 out of 5 stars in Google Play. Many reviews of the app are negative, with many pointing out the outdated user interface and limited features. They say it is difficult to navigate, doesn’t execute trades well, and experiences frequent crashes. Other complaints state the app can’t complete automatic investments and can’t check individual fund performance.
The bottom line
Vanguard is a safe place to hold your investments. The company doesn’t offer all the bells and whistles that some competitors do, but its investments and low-fee offerings are solid.
If you’re a less active investor, Vanguard’s investment platform should work just fine.
If you’re still worried about where to invest your money, Unbiased can connect you to a financial advisor who can offer advice tailored to your individual situation.
Get connected to an advisor through Unbiased today.
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
What services does Vanguard offer?
Vanguard offers a variety of financial advisory services designed for different investor needs, from beginners starting out to ultra-high-net-worth individuals seeking tailored wealth strategies:
- Vanguard Digital Advisor – A robo-advisor service built for beginners and cost-conscious investors, with a low $100 minimum investment.
- Vanguard Personal Advisor – Combines digital tools with human financial planners, best suited for investors with at least $50,000 to invest.
- Vanguard Personal Advisor Select – Offers dedicated Certified Financial Planners (CFPs) and personalized strategies, designed for high-net-worth clients with a $500,000 minimum.
- Vanguard Wealth Management – A premium service for ultra-wealthy investors, delivering estate, tax, and investment planning with a $5 million minimum.
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.