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.
Vanguard Review
With a radical structure and investor-first philosophy, Vanguard is one of the world’s largest investment management firms known for providing trusted advice since 1975. The firm offers a wide array of low-cost mutual funds, ETFs, and related services.
As of January 31, 2020, Vanguard had $6.2 trillion in global assets under management. This top-rated investment firm serves more than 30 million investors throughout 170 countries around the world.
Biggest & Best Investment Firms | 2020-2021 Ranking
Similar to other large and best investment firms on our ranking, Vanguard works with a fee-based structure. The firm’s advisors uphold a fiduciary duty to clients of complete transparency of any conflicts of interest and to always put their clients’ best interests first.
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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 economical 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 expert advice.
Vanguard offers funds at prices that consistently rank below other top investment firms. In 2019, the average paid by investors was 0.10%, as compared to the industry average (excluding Vanguard) of 0.57%.
This is a significant saving and represents a difference in investor costs of 82%. This low-price advantage is a big benefit to investors who can keep more of their earnings and see larger overall savings on long-term investments.
In a hypothetical example on the firm’s website, an investor putting in $50,000 could potentially pay over $4,000 less in fees over a decade.
Best Investment Companies of 2020-2021
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Vanguard Review | Shared Ownership
One of the significant ways Vanguard stands out from the competition and defines itself as one of the best investment companies that also happens to be one of the biggest investment firms is through its unique “mutual” mutual fund company structure.
Rather than using the standard investment management company structure, which is being 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. So, investors gain a significant benefit from this unique way of doing business.
The ultimate result is that investors get 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 due to the broad range of investment types and portfolio strategies that the firm offers.
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’s advisors believe that investment goals should be both measurable and attainable. This “keep it real” attitude helps investors carefully determine spending and saving requirements that are realistic so they can be successful in achieving their end results.
The advisors of this top asset management firm detail the importance of clearly defined goals and realistic methods to reach them, which can protect investors from many of the commonly made mistakes that come from expectations that are not based in reality.
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 are top in the industry.
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 investment balance. This means asset allocations are developed using funds that are broadly diversified and matched to each client’s goals.
Risk and reward are carefully balanced and used as a guide to developing portfolio distribution that fits the overall objective of the investor. With a wide range of investment vehicles to choose from, Vanguard advisors help clients find the best balance for their asset allocation.
This idea of balance and diversification allows investors to remain confident even in the face of fluctuating markets. The careful choice of products helps ensure investors are better prepared to stay committed to their long-term strategy and see the results they want.
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Rating Summary
There is a reason that Vanguard has been so well respected among the largest and best investment companies for so many years. The firm’s philosophy is based upon simple, straight forward advice that has a proven track record of success.
The firm’s structure and dedication to keeping fees low make it a top investment firm choice for both new and seasoned investors alike. It’s hard to beat the firm’s low fees, which means more of your money stays working for you in investments.
With the advantage of shared ownership and a long history innovation, Vanguard scores a 5-star rating as one of the best investment companies to consider working with in 2020-2021.
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Image sources:
- https://about.vanguard.com/
- https://about.vanguard.com/what-sets-vanguard-apart/the-benefits-of-lower-costs/
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.
