While You Were Busy Sleeping, Vanguard Wasn’t…

But, at what point do we see a big bank or brokerage firm (where TRILLIONS of dollars and MILLIONS of accounts are NOW) decide, “Hey, maybe we should offer a robo-advising service too?” Within a year or two using some simple reverse engineering, hugely profitable balance sheets, massive infrastructure, and tons of people…RoboGroup lives. What, you think they’re busy eating crayons? You think they don’t get the same “Millenials hate everything” reports? No, they’ll move when they want to. They’ll move when they see it’s profitable.

That quote was me, last year, painting the landscape of Robo-advice. Apparently I was right on time… 

So, a year later, by now I’m sure you’ve heard about Schwab’s move into robotown (I’m reviewing it now in some spreadsheets and risk/reward matrix and laughing a lot)… but that’s nothing compared to what I see Vanguard cooking up some time in the very near future.

They just revamped their site recently, and slowly but surely the sleepy giant is awakening… 
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So while Wealthfront was happily announcing this…

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Vanguard announced this: assets in their virtual advice unit reached $10.1 billion at the end of 2014, up from $755 million in 2013.H5cabLy-1

Just as a reminder: Vanguard Group reached $3 trillion (with a T) in global assets under management for the first time in 2014, a new company record.

So yeah — You want to make portfolios available online for .25%? Okay, we’ll just go ahead and do that for free. And, how about we just add a real-life adviser to help too, for .30%?

Just to keep it interesting…

Read More:

Paint By Numbers: Robo-Advisors

Vanguard may expand fast-growing virtual investing service to advisers — Investment News

2 thoughts on “While You Were Busy Sleeping, Vanguard Wasn’t…

  1. Pingback: Your Guide to Understand (And Compete With) Robo-Advisors | I ❤ Wall Street.

  2. brettalexander

    One has to wonder now that the Robo-Elephants (Schwab/Vanguard) are stirring, perhaps instead of the killing off the human advisers, the Robo’s will simply eat each other, starting with their young. This kind of reminds me of the discount broker wars of the 90’s.

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