Vanguard Sways Financial Advisers to Bring $1 Trillion on Board
- Passive funds, ETFs drive fee-based advisers to fund giant
- BlackRock, Schwab cut fund expenses in quest for market share
Vanguard CEO McNabb Expects Fees to Decline
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Financial advisers who once shunned Vanguard Group because it didn’t pay commissions are now among the fund giant’s best customers.
Money from brokers and independent advisers accounted for about 50 percent of the $225 billion Vanguard has brought in this year, topping cash from individuals or retirement plans, according to company data. While Vanguard is often associated with mom-and-pop investors and 401(k) accounts, this group of professionals now accounts for about a third, or $1.3 trillion, of the firm’s assets. That’s as big as its individual investor business, the traditional leader.