Why invest with Vanguard?

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Why invest with Vanguard?

Postby acegolfer » Tue Apr 02, 2013 5:53 pm

I'm trying to convince others to use Vanguard Group. Here is the list of reasons that I can think of. Please add, if I missed any.

1. Vanguard mutual funds are low cost.
2. No transaction fees if buying Vanguard funds or ETFs.
3. Automatic dollar cost investing with mutual funds.
4. Owned by investors not by 3rd party shareholders. No conflicts of interest.
Last edited by acegolfer on Thu Apr 04, 2013 6:41 am, edited 1 time in total.
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Re: Why invest with Vanguard?

Postby JamesSFO » Tue Apr 02, 2013 5:59 pm

I think those could generally apply to Fidelity (for example) to a degree too with some wording changes. So now you get into secondary things like long term who is going to be looking out for fund holders more and more likely to lower fees?

I also think you need to understand what the person values in their current fund custodian/brokerage shop. Many people who trade semi-frequently find Vanguard's brokerage services (VBS) disappointing compared to competing electronic platforms.
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Re: Why invest with Vanguard?

Postby umfundi » Tue Apr 02, 2013 6:25 pm

acegolfer wrote:I'm trying to convince others to use Vanguard Group. Here is the list of reasons that I can think of. Please add, if I missed any.

1. Vanguard mutual funds are low cost.
2. No transaction fees if buying Vanguard funds or ETFs.
3. Automatic dollar cost investing with mutual funds

Not sure of the question:

If you mean use Vanguard for your investments, there is no doubt.

If you mean use Vanguard services as a platform to manage your investments, then:

a) If all your investments are at Vanguard, OK.
b) If you have investments outside of Vanguard, I don't think there's a compelling case.

Keith
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Re: Why invest with Vanguard?

Postby HardKnocker » Tue Apr 02, 2013 7:50 pm

acegolfer wrote:I'm trying to convince others to use Vanguard Group.


Why bother? Why run around like a religious evangelist trying to convert people to your way of thinking?
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
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Re: Why invest with Vanguard?

Postby BenBritt » Wed Apr 03, 2013 3:53 pm

Hardknocker:
Please do not disparage evangelists, Billy Graham is one. Also the poster does not have to "mind his own business". Try to be civil. Perhaps this thread should be locked.
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Re: Why invest with Vanguard?

Postby HardKnocker » Wed Apr 03, 2013 7:11 pm

BenBritt wrote:Hardknocker:
Please do not disparage evangelists, Billy Graham is one. Also the poster does not have to "mind his own business". Try to be civil. Perhaps this thread should be locked.


I can certainly suggest the OP mind his own business. It will save him a lot of grief and possibly family and friends.

The newly converted are usually the most earnest in spreading the Gospel. Most people don't want to hear about it though. If they ask for advice then give it. Otherwise it's often best to just go your way and lead by example.

As far as religious folk knocking on my door to tell me all about their faith, I'll pass.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
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Re: Why invest with Vanguard?

Postby ruralavalon » Wed Apr 03, 2013 7:22 pm

They have the broadest selection of low cost mutual funds, suitable for any type of low cost investing, such as:
single fund;
balanced fund;
total market type three fund portfolios;
sector fund;
slice and dice;
small & value tilting;
index funds; and even
managed funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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Re: Why invest with Vanguard?

Postby Taylor Larimore » Wed Apr 03, 2013 7:40 pm

Ace Golfer:

Mike Piper is the highly respected author of the Oblivious Investor. This is his answer to your question:

Why I Invest With Vanguard

Best wishes
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: Why invest with Vanguard?

Postby afan » Fri Apr 05, 2013 8:45 pm

[quote]Owned by investors not by 3rd party shareholders. No conflicts of interest.[/quote]

This one does not apply to Fidelity, Schwab, DFA, or any other firm with which I am familiar. It is the reason Vanguard can pursue low costs for all its funds. Other companies try to match Vanguard's fees for a few chosen loss leading index funds, but you cannot be sure they will continue to find this to be their strategy.

But I gave up trying to convince people. I cannot even get my employer to consider switching its retirement program to Vanguard. They use Fidelity, and hire consultants on top of that. Nuts. Since Fidelity has some low cost index funds, I am OK, but it is annoying.
"We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either." | | --Larry Swedroe
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