Intro – Vanguard Reviews & Ranking
AdvisoryHQ recently published its list and review of the top investment companies, a list that included Vanguard.
Below we have highlighted some of the many reasons Vanguard was selected as one of the best investment companies.
Click here for a detailed review of AdvisoryHQ’s various selection methodologies: Ranking Methodologies.
With a passion for service and trailblazing history, Vanguard is one of the world’s largest investment management firms. Founded in 1975, this top investment company excels at providing low-cost investment products to millions of clients around the world.
As one of the top 10 investment companies, Vanguard manages about $5.2 trillion global assets, as of January 31, 2019, and serves more than 20 million investors in 170 countries.
While this top-ranked large investment firm doesn’t specifically say they are fee-only or fee-based, they do note that “our advisors don’t work on commissions.” We always recommend confirming fee structure before securing a top investment firm.
2019’s Biggest and Best Investment Firms
Key Factors That Led to Our Ranking of Vanguard as One of the Top 10 Investment Companies
Vanguard Review | Cost
Vanguard prides itself on being one of the top investment companies that offers some of the most attractively low prices. This makes it not only one of the best investment companies for those new to investing, but also for anyone who wants to take advantage of low fees and transparency.
Vanguard offers funds at prices that consistently rank below others in the industry. In 2016, the Vanguard funds’ average expense ratio was 0.12%, which was significantly lower than the industry average of 0.62%.
That represents an 81% price difference, which can generate substantial savings for investors over the long term.
Top Investment Companies
In 2018, the average expense ratio across the entire fund industry (excluding Vanguard) was 0.58%, which comes down to $58 for every $10,000 invested. Compare that average expense ratio with Vanguard, where the average for all of its mutual funds and ETFs was 0.10% – just $10. That’s a remarkable 83% lower.
What Makes Vanguard Unique
Vanguard Review | Shared Ownership
One of the significant ways Vanguard stands out from the competition and defines itself as one of the biggest investment firms, and also one of the best investment companies, is through their unique “mutual” mutual fund company structure.
What this means is that rather than being like the standard investment management company, which is owned by outside stockholders, Vanguard is owned by the funds. The funds are owned by shareholders.
This client-owned structure allows Vanguard to reinvest profits into shareholders in the form of lower fees and expenses. The result is that investors have the ability to keep more of their returns, generating higher earnings over time.
Vanguard Review | Goal-Centric Investing
Vanguard is often ranked as one of the best investment companies and the biggest investment firms because they offer a broad range of types of investments and portfolio strategies.
All investment products and options are built on shared themes, and one of those themes revolves around the importance of setting and achieving financial objectives.
Vanguard encourages their belief that investment goals should be both measurable and attainable. They also believe success shouldn’t be dependent on outsized returns or saving and spending requirements that aren’t practical or realistic to the investor’s life.
Instead, Vanguard details the importance of clearly defined goals and realistic methods to reach them, which can protect investors from many of the commonly made mistakes.
Goal-centric investing paired with practicality are critical components of the long-term success of Vanguard, which led to its inclusion on this list of investment companies that excel.
Vanguard Review | Balance
Another relevant component of the Vanguard’s approach to investing that has helped the firm become one of the world’s top-rated investment companies is a sense of balance. Balance at Vanguard means asset allocations are developed using funds that are broadly diversified.
Investment strategies hinge on a distribution that fits the overall objective of the portfolio. Expectations should be reasonable in terms of both risk and returns, and diversification is key to avoid exposure and minimize risk.
This idea of balance and diversification allows investors to remain confident even in the face of fluctuating markets, and rather than making impulsive decisions, they’re better prepared to stay committed to their long-term strategy.
Vanguard’s measured, commonsense, goal-oriented approach has guided their clients to make successful investment decisions for generations. Clients also benefit from their personalized advice that builds portfolios from the client up.
Their dedication to keeping fees low make them a top investment firm choice for both new and seasoned investors alike.
With world-renowned mutual funds, the advantage of shared ownership, and a legacy of innovation, Vanguard solidifies their a 5-star rating as one of the best investment companies to consider partnering with in 2019.
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AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.