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Vanguard Repositions Robo in Advisor Market

May 24, 2019

Fund giant Vanguard is starting to prepare its robo-investing service for use by third-party financial advisors, according to news reports.

Rolled out four years ago, Vanguard’s Personal Advisor Services was originally designed to allow investors access to robo-advice as well as Vanguard’s financial professionals, ThinkAdvisor writes. Speaking with reporters two weeks ago at the Morningstar Investment Conference, Vanguard CEO Tim Buckley said that the company could soon grant third-party advisors access to some or all of the technology on the PAS platform, according to WealthManagement.com.

“We’re building the next generation of this in modules so that it could actually be used by advisors,” he said, according to the web publication. “If we can help lower the cost of advice, we’ll do that, even if it’s not directly through our own advisors.”

The company has now started to make that access into a reality, according to ThinkAdvisor.

“We often receive requests for access to methodologies that have been perfected in our Personal Advisor Services offering, and we’re in the beginning stages of building out those capabilities in order to help advisors improve end investor outcomes,” Vanguard tells the publication in a statement.

(Getty)

The firm hasn’t announced a timeline for the rollout, according to ThinkAdvisor. But the move will put Vanguard in the ranks of Charles Schwab and Betterment for Advisors, Gavin Spitzner, president of Wealth Consulting Partners, wrote on LinkedIn, according to the publication.

PAS has fewer than 1 million investors, according to Spitzner, and Vanguard says the platform has around $130 billion in assets, ThinkAdvisor writes. In all, Vanguard manages $5.4 trillion, according to the publication.

By Alex Padalka
  • To read the ThinkAdvisor article cited in this story, click here.