The proportion of new money invested in Vanguard funds coming via brokers and independent advisers has been increasing steadily, according to Investment News. In a fee system, the cost of the funds is tacked on to the typical 1% charge for advice, so using inexpensive funds and ETFs allows an adviser to hold down the price to the customer. Historically, a lack of commissions deterred financial advisers from recommending Vanguard funds, however, greater scrutiny of how wealth managers are paid has increased interest in passively managed index trackers and ETFs pioneered by the Pennsylvania-based firm. “Investors have become more aware that there is an alternative way for them to invest their money,” said John Bogle, founder of Vanguard.
The proportion of new money invested in Vanguard funds coming via brokers and independent advisers has been increasing steadily, according to Investment News. Historically, a lack of commissions deterred financial advisers from recommending Vanguard funds, however, greater scrutiny of how wealth managers are paid has increased interest in passively managed index trackers and ETFs pioneered by the Pennsylvania-based firm. “Investors have become more aware that there is an alternative way for them to invest their money,” said John Bogle, founder of Vanguard.