Vanguard Expands Access to Advice By Reducing Asset Minimum for Robo Service, Digital Advisor

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Sep 04, 2024, 09:07 ET

VALLEY FORGE, Pa., Sept. 4, 2024 /PRNewswire/ -- Vanguard today announced that it will reduce the minimum asset requirement from $3,000 to $100¹ for its robo-advisor service, Digital Advisor, significantly increasing accessibility for investors interested in utilizing a digital advice service to manage short- and long-term financial goals.

Vanguard Digital Advisor launched in 2020 and provides an all-digital financial planning and investment advisory service that delivers highly personalized, convenient, low-cost advice. The digital advice platform helps clients identify their retirement and non-retirement goals, and then crafts and manages customized, diversified and tax-efficient investment portfolios to achieve them. As of June 30, 2024, Digital Advisor has more than $19 billion in assets under management.

"Lowering the investment minimum for Vanguard Digital Advisor is an important step in our endeavor to broaden investors' access to advice, and to empower them earlier in their financial journey," said Brian Concannon, Head of Vanguard Digital Advisor. "We believe that advice strengthens investors' ability to navigate their personal finance and investment needs, and can drive better investment outcomes."

The lowered minimum comes on the heels of a period of accelerated growth and innovation for Digital Advisor, as Vanguard has invested significantly in the platform's client experience. Notable recent features and enhancements include:

Personalized coaching to meet financial goals. Clients can receive tailored insights and actionable digital reminders to ensure they are taking necessary steps to achieve defined objectives.
Broadened portfolio options. Clients may choose from a variety of broadly diversified portfolio options. For example, those with sufficient risk tolerance and patience for active exposure can now complement their low-cost index funds with active funds.
Enhanced tax-efficiency. An automated tax loss harvesting (TLH) service seeks to reduce tax bills by selling Vanguard equity index funds at a loss and replacing them with similar securities to maintain market exposure.² Other tax-efficient techniques include asset location, tax-efficient rebalancing, and tax-efficient fund selection (e.g., municipal bond funds).
Streamlined couples planning. Clients who previously had separately owned accounts can now create a unified plan (a 'household'), allowing them to collaboratively build and pursue shared short-term and long-term financial goals. TLH and asset location can also be considered at the 'household' level, further optimizing tax efficiency.
More timely investment of cash. By trading in fractional shares, clients no longer need to wait for dividends or contributions to add up to purchase full shares. This allows clients to remain more fully invested across their portfolio.

"Advice is foundational to our mission to give investors the best chance for investment success," said Doug Mento, Head of Vanguard Advice. "We understand the needs of our investors are ever-changing, and we are dedicated to continuously evolving and innovating our advice offers to ensure clients have the tools, guidance, and importantly, the access, they need to achieve their financial goals."

More information about Vanguard's advice services can be found here.

About Vanguard

Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com

¹Enrollments in Vanguard Digital Advisor require at least $100 in each Vanguard Brokerage Account. For each taxable account or traditional, Roth, rollover, or inherited IRA you wish to enroll, the entire balance must be in certain investment types (based on eligibility screening by Digital Advisor at the time of enrollment) and/or the brokerage account's settlement fund.

² Tax-loss harvesting is an optional election. Tax-loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications. We recommend that clients carefully review the terms of the consent and consult a tax advisor before taking action.

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

Vanguard Personal Advisor's and Vanguard Digital Advisor's services are provided by Vanguard Advisers, Inc. ("VAI"), a federally registered investment advisor. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation ("VMC"), member FINRA and SIPC. VAI is a subsidiary of Vanguard and an affiliate of VMC. Neither Vanguard, VAI, nor its affiliates guarantee profits or protection from losses.

Please review VAI's Form CRS and the Vanguard Digital Advisor and Vanguard Personal Advisor Brochure for important details about VAI's services.

Vanguard Marketing Corporation, Distributor.

SOURCE Vanguard