Friday, September 20, 2019
Indexing giant Vanguard Group plans to launch a robo-advisory service that cuts out human financial advisers completely.
Vanguard is pilot-testing the new platform, in a sign of how the world’s second-largest money manager is aiming to capture younger, tech-savvy investors.
Vanguard’s robo-advisory push would increase the competition with companies including Charles Schwab Corp. and Betterment LLC for the money and data of this younger demographic. The automatic service would target fees of 0.15%, or $15 for every $10,000 invested, a price that undercuts many rivals. The total cost is expected to be about $20 on every $10,000 for individual investors once investment fees on the Vanguard funds the service will use are factored in.