Vanguard, Low-Cost King, Has Some Advice for Advisers on Price

Vanguard's McNabb Dismisses Criticisms of Passive Investing
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Tim Buckley, the new chief executive of Vanguard Group, has some advice for financial advisers: Embrace the low costs that are coming for you.

He should know. Vanguard has grown into the world’s second-largest money manager on the back of its low-fee strategy and is now pioneering cut-price advice via its Personal Advisor Services. The unit, which has taken in more than $100 billion in a couple of years, charges just $3 for every $1,000 invested for its advice, which is generated by both humans and computers.