Vanguard Online Brokerage Review 2022 – Forbes Advisor
In line with Vanguard’s long-term investment philosophy, there are some gaps in the range of offerings available on this brokerage platform. Foreign exchange (forex), futures and cryptocurrency are some of the asset classes missing from the Vanguard lineup.
Cash investment options
Vanguard offers two options for holding cash in your account: a money market fund and certificates of deposit (CDs). The money market fund has a minimum investment requirement of $3,000 and an average SEC return of 0.01% over seven days, with expense ratios ranging from 0.09% to 0.15%.
CDs have a minimum investment requirement of $1,000 and are FDIC insured up to $250,000. Vanguard currently offers yields ranging from 0.05% to 2.00% for terms ranging from three months to 10 years.
Vanguard Digital Advisor
Vanguard Digital Advisor is a lower-than-average fee robo-advisor that invests money in one of four Vanguard ETFs, with expense ratios ranging from 0.03% to 0.08%. Although the digital adviser is suitable for young investors who want a basic investment portfolio and low fees, it lacks some features common to other robots, such as ESG funds or tax loss harvesting.
To start investing with Vanguard Digital Advisor, you’ll take a quick quiz that will help you determine your retirement goals, risk tolerance, and funding needs to meet your goals. This will help the robo-advisor invest you in the best ETFs for your needs; the program will then automatically rebalance your account over time.
There is a $3,000 minimum listing balance for Vanguard Digital Advisor for taxable brokerage accounts, and a $5 minimum listing balance for 401(k) accounts.
Vanguard Personal Advisor Services
Investors with larger portfolios should consult Vanguard’s personal advisor services. It requires a minimum signup balance of $50,000 and charges an annual management fee of 0.3% of your balance.
To get started with Vanguard Personal Advisor Services, you’ll need to complete a questionnaire to determine your goals, risk tolerance, and funding needs. Once you’ve completed this step, a financial advisor will contact you so you can work together to create an investment plan and portfolio tailored to your needs.
If your portfolio is between $50,000 and $500,000, you have access to a team of financial advisors to help you plan. Investors with more than $500,000 invested will be matched with a specific advisor who will accompany them over the long term.
Personal Advisor Services invests your money in one of four Vanguard ETFs, with expense ratios ranging from 0.03% to 0.08%. Although the program does not offer tax loss collection, it does provide a service called the “MinTax Cost Basis Method,” which helps you identify sales of assets in your portfolio that may qualify for preferential tax treatment.