Why Choose Vanguard | Vanguard (2024)

FAQs

What is special about Vanguard? ›

Vanguard set out in 1975 under a radical ownership structure that remains unique in the asset management industry. Our company is owned by its member funds, which in turn are owned by fund shareholders. With no outside owners to satisfy, we focus squarely on meeting the investment needs of our clients.

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.

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.

Get FDIC insurance and a competitive APY for your cash savings. The Vanguard Cash Plus Account features a bank sweep program eligible for Federal Deposit Insurance Company (FDIC) insurance that offers a competitive yield on your short-term savings.

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 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.

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 owned by the Vanguard funds themselves—and the funds exist solely to build wealth for their shareholders. In stark contrast, other investment companies are held by private owners or stockholders, who rightly expect to enjoy profits. In real terms, our corporate structure makes our investors our owners.

Vanguard's mission is to "take a stand for all investors, to treat them fairly, and to give them the best chance for investment success."6 It prides itself on its stability, transparency, low costs, and risk management. It is a leader in offering passively managed mutual funds and ETFs.

Is Vanguard or Fidelity better? ›

While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.

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

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.

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.

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.