Vanguard survey

equitydealer

As a big Bogle fan it’s sad to say that I think Vanguard is losing its way a bit. They need to stick to their values in delivering the lowest cost index trackers, cut their annual fees and steering clear of active management. They even had to close their financial planning unit in the UK because of a lack of demand. 

GeoffTF

Alexland said:

GeoffTF said:

Vanguard's competitors typically have high margin business (e.g. managed funds and advice) to subsidise their tracker funds. Vanguard is trying to copy them. Vanguard is also keen to generate revenue in less competitive markets such as ours. I am happy to be subsidised by less savvy customers.

It's the kind of nonsense that Jack Bogle would not approve of. Vanguard should be approaching the advice market with the objective of developing a product that genuinely benefits the customer rather than growing a cash cow.

There is a video on the web where Bogle says that people do not need advice, but some think they do and Vanguard provides advice for those who think they need it. Advice benefits the customer if it makes them happier, even if it does not make them richer. If the lack of cash cows makes Vanguard's trackers uncompetitive, I am not sure that benefits anyone.