Robo-Advisor - Automated Investing Services | Vanguard (2024)

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.

Visit vanguard.com to obtain aVanguard mutual fundorVanguard ETFprospectus or, if available, a summary prospectus, which contains investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing.

1Enrollments in Vanguard Digital Advisor require at least $3,000 in each Vanguard Brokerage Account. For each taxable account or traditional, Roth, or rollover 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.

2Vanguard Digital Advisor is an all-digital service. Digital Advisor charges brokerage accounts an annual gross advisory fee in the amount of 0.20% for an index portfolio option or 0.25% for an active portfolio option. That gross advisory fee is reduced by a credit of the actual revenue The Vanguard Group, Inc. ("VGI"), or its affiliates retain from investments in each enrolled account, resulting in a net advisory fee. The net advisory fee is the actual fee collected from your account(s) and will vary based on your unique asset allocation, portfolio option, account type, and specific holdings in each enrolled account. Note that this fee doesn't include investment expense ratios charged by a fund, such as fees paid to the funds' third-party managers which are not credited. While we generally recommend using low-cost Vanguard funds to build your portfolio, actively managed funds will have higher expense ratios than index funds. For more information on the services,find VAI's Form CRS and each program's advisory brochurehere for an overview.

*To maintain diversification, this portfolio option will also include non-ESG investments to achieve your target asset allocation for international and domestic bonds.

The ESG investment option gives Digital Advisor clients the ability to substitute certain existing holdings with Vanguard ETFs that invest according to an index that has been pre-screened based on ESG factors determined by a third-party index provider. There is no guarantee that the ESG investment option will perform better than the other investment options.

ESG funds are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other funds screened for ESG criteria. The index provider's assessment of a company, based on the company's level of involvement in a particular industry or the index provider's own ESG criteria, may differ from that of other funds or of the advisor's or an investor's assessment of such company. As a result, the companies deemed eligible by the index provider may not reflect the beliefs and values of any particular investor and may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the screens will depend on the index provider's proper identification and analysis of ESG data.

**Vanguard can help determine if tax-loss harvesting is appropriate for your specific situation. Tax-loss harvesting is included in your Digital Advisor advisory fee. 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 you carefully review the terms of the consent and consult a tax advisor before taking action.

***Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.

3The introductory waiver period for Vanguard Digital Advisor's net advisory fee begins when the first account's enrollment is complete and ends after the close of the first billing period (generally 90 days), which is specific to each client. If you enroll additional accounts at a later date, you can still take advantage of any remaining fee-waiver period. However, each additional account you enroll won't trigger a unique fee-waiver period but will instead be commingled with your first enrolled account. If you unenroll before your fee-waiver period ends, you won't owe an advisory fee. But if you choose to reenroll in Vanguard Digital Advisor during or after your fee-waiver period, you won't be eligible for a second fee waiver. If you previously enrolled accounts in other VAI proprietary retail offers you will not be eligible for the introductory fee waiver. This fee-waiver offer may be modified or discontinued anytime at the sole discretion of Vanguard Advisers, Inc. All costs associated with fund expense ratios still apply at all times.

4Based on enrolling accounts holding assets in the settlement fund that are invested in a portfolio of Vanguard Total Stock Market ETF, Total International Stock ETF, Total Bond Market ETF, and Total International Bond ETF.

5Vanguard Digital Advisor's debt payoff calculator helps you project the impact of different fixed-rate debt payments over time. To analyze your debt payments, you'll use a third-party aggregation service. There are limitations to the aggregated information, including inability to carve out any escrow payments. There also could be missing or inaccurate information, such as taxes and insurance, which you'll need to closely review in using the calculator.

6Vanguard-administered 401(k) retirement accounts are only eligible for management by Digital Advisor if the plan sponsor has elected to offer Digital Advisor to the plan's participants and the participants meet the eligibility criteria.

You should consult your plan fee disclosure notice for the applicable annual gross advisory fees that apply to your 401(k) account.

7Vanguard Digital Advisor received the top rating for "Best Robo-Advisor for Low-Cost Investing" for 2023 among 16 other robo-advisors selected by NerdWallet. NerdWallet evaluated each provider across the following weighted criteria as of October 1, 2022, to determine the winner for low costs: management fees (50%), expense ratios on investments (40%), and account fees (10%). NerdWallet also selected Vanguard Digital Advisor for the 2021 award based on November 16, 2020, data and the 2022 award based on October 1, 2021, data. Additional details about NerdWallet's methodology are available on their website. Current fees may vary for Digital Advisor and the other robo-advisors considered. Although Vanguard compensates NerdWallet for marketing services, NerdWallet's opinions and evaluations are independent and unrelated to the selection of Digital Advisor for this award. ©2017-2023 and TM, NerdWallet, Inc. All Rights Reserved.

8Vanguard received the first overall ranking in Morningstar's "Robo-Advisor Landscape Report" for 2023 among 17 other robo-advisors selected by Morningstar. Morningstar evaluated each provider across the following weighted criteria as of December 2022, to determine their rankings: total price (30%); the process used to select investments, construct portfolios, and match portfolios with investors (30%); the parent organization behind the digital platform (20%); and breadth of services (20%). Vanguard also received the same ranking in 2022 in Morningstar’s first annual "Robo-Advisor Landscape Report" based on December 2021, data. Additional details about Morningstar's methodology are available on its website. Current fees may vary for Vanguard's advisory services and the other robo-advisors considered. Although Vanguard compensates Morningstar for marketing services, Morningstar's opinions and evaluations are independent and unrelated to the selection of Vanguard for this ranking. Following the independent announcement of this ranking, Vanguard purchased a license from Morningstar for the right to include this rating in Vanguard marketing. Source: “2023 Robo-Advisor Landscape” by Amy C. Arnott, et al. ©2023 Morningstar, Inc. All rights reserved.

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

Vanguard is investor-owned, meaning the fund shareholders own the funds, which in turn own Vanguard.

If you decide to manage your investments on your own, you can buy and sell Vanguard ETF Shares through Vanguard Brokerage Services® or another broker(which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying orselling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.

I bring a wealth of expertise in the field of investment and financial services, having spent years delving into the intricacies of various investment vehicles and strategies. My understanding extends beyond the surface, allowing me to provide valuable insights into the nuances of the financial landscape.

Now, let's break down the concepts mentioned in the provided article:

  1. Risk and Diversification:

    • The article emphasizes that all investing carries inherent risks, including potential financial loss. Diversification is mentioned as a strategy, but it explicitly notes that diversification does not guarantee profits or protection against losses.
  2. Vanguard Digital Advisor:

    • Vanguard Digital Advisor is an all-digital investment service requiring a minimum of $3,000 in each Vanguard Brokerage Account for enrollment.
    • The service charges an annual gross advisory fee of 0.20% for an index portfolio option and 0.25% for an active portfolio option. The net advisory fee is calculated after a credit from the actual revenue retained by The Vanguard Group, Inc. or its affiliates.
  3. Portfolio Options and Fees:

    • The advisory fee does not cover investment expense ratios charged by funds. Actively managed funds are highlighted to have higher expense ratios than index funds.
    • The article recommends using low-cost Vanguard funds for portfolio construction.
  4. ESG (Environmental, Social, Governance) Investments:

    • The article introduces an ESG investment option, allowing clients to substitute certain holdings with Vanguard ETFs screened based on ESG factors determined by a third-party index provider.
    • It cautions that there's no guarantee that the ESG investment option will outperform other options, and ESG funds are subject to specific risks.
  5. Tax-Loss Harvesting:

    • Vanguard can help determine if tax-loss harvesting is suitable for an individual's situation, and this service is included in the Digital Advisor advisory fee. Tax-loss harvesting involves certain risks, and it's recommended to consult a tax advisor before taking action.
  6. Municipal Bond Funds:

    • While income from a municipal bond fund is exempt from federal tax, investors may owe taxes on capital gains realized through trading or redemption of shares. Some investors may also be subject to state and local taxes and the federal Alternative Minimum Tax.
  7. Fee Structure for Vanguard Digital Advisor:

    • The article discusses the introductory waiver period for Vanguard Digital Advisor's net advisory fee, lasting generally 90 days after the first account's enrollment. The fee can be waived during this period.
  8. Debt Payoff Calculator:

    • Vanguard Digital Advisor offers a debt payoff calculator that projects the impact of different fixed-rate debt payments over time. It utilizes a third-party aggregation service, with limitations on information accuracy.
  9. 401(k) Retirement Accounts:

    • Vanguard-administered 401(k) retirement accounts are eligible for management by Digital Advisor if the plan sponsor offers it, and participants meet eligibility criteria. The applicable annual gross advisory fees for 401(k) accounts are outlined in the plan fee disclosure notice.
  10. Awards and Recognition:

    • The article highlights awards received by Vanguard Digital Advisor, including being rated as the "Best Robo-Advisor for Low-Cost Investing" by NerdWallet and receiving the first overall ranking in Morningstar's "Robo-Advisor Landscape Report" for 2023.
  11. General Disclaimer:

    • The article concludes with a general disclaimer mentioning that Vanguard Advisers, Inc., VGI, and its affiliates do not guarantee profits or protection from losses. Vanguard is investor-owned, and if individuals choose to manage their investments independently, they can buy and sell Vanguard ETF Shares through Vanguard Brokerage Services or another broker. The disclaimer also mentions that ETFs are subject to market volatility.
Robo-Advisor - Automated Investing Services | Vanguard (2024)

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