Vanguard Reaches $4 Trillion for First Time

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MFInvestor
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Vanguard Reaches $4 Trillion for First Time

Post by MFInvestor »

Wall Street Journal Reports:

Vanguard Reaches $4 Trillion for First Time
The rise is largely the result of a rush by investors to embrace lower-cost index-tracking products such as exchange-traded funds. Vanguard started the first index-mutual fund for retail investors 40 years ago.

Fund-research firm Morningstar Inc. said in a report this week that by its tally net inflows at Vanguard in 2016 topped those of all of its rivals combined.

That rapid growth has led to an increase in client calls and some customer complaints about long wait times when calling the company. Vanguard doesn’t have a network of retail branches like some of its rivals.

Vanguard executives said in a client webinar early this year that the firm had received “unprecedented phone volumes” but that it doesn’t trade cost for service.
https://www.wsj.com/articles/vanguardre ... 1486745349
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Re: Vanguard Reaches $4 Trillion for First Time

Post by BrandonBogle »

by its tally net inflows at Vanguard in 2016 topped those of all of its rivals combined.
Sounds like the secret is out! :)
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Re: Vanguard Reaches $4 Trillion for First Time

Post by BeachPerson »

At this rate, Vanguard will crush last years' inflows.

Great job!!!
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Vanguard Reaches 4 trillion in assets for the first time

Post by G-Force »

[Thread merged into here, see below. --admin LadyGeek]

https://www.wsj.com/articles/vanguardre ... 1486745349

No pay wall article: https://archive.is/3Cy68

With all the complains on this board about Vanguard support, I found the following passages interesting and perhaps encouraging:
A spokeswoman for the firm said it is “grateful” to investors for the assets, but said growth isn’t the firm’s goal.
That rapid growth has led to an increase in client calls and some customer complaints about long wait times when calling the company. Vanguard doesn’t have a network of retail branches like some of its rivals.

Vanguard executives said in a client webinar early this year that the firm had received “unprecedented phone volumes” but that it doesn’t trade cost for service.

Vanguard, which has a staff of about 15,000, hired more than 1,700 new full-time staff members last year and said it expects to hire a similar number of new “crew members” in 2017.

“We’ve definitely ramped up hiring in our call centers and processing groups, but we’re also continuing to add talent across a range of specialties, including experienced investment roles,” the spokeswoman said in an email.
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Re: Vanguard Reaches 4 trillion in assets for the first time

Post by gkaplan »

Thread started this morning.


viewtopic.php?p=3232267#p3232267
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Re: Vanguard Reaches $4 Trillion for First Time

Post by LadyGeek »

I merged G-Force's thread into here. The combined thread is now in the Investing - Theory, News & General forum (news).
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"Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by Taylor Larimore »

[Thread merged into here, see below. --admin LadyGeek]

Bogleheads:

This morning, before going sailing, I opened the door and picked-up our Wall Street Journal. On the front page was a large green graph showing the amazing growth of "Vanguard Group's assets under management, in trillions of dollars." Alongside the graph is the headline: "VANGUARD HITS A $4 TRILLION MILESTONE."

Inside the Journal is a lengthy article attributing Vanguard's success:

"The rush to Vanguard is largely the result of a push to embrace funds that mimic broad indexes for a fraction of the cost of traditional actively managed mutual funds."

Not a word about John C. Bogle who founded Vanguard and offered the first low-cost index mutual fund for ordinary investors. Shame.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by cherijoh »

Taylor Larimore wrote: Not a word about John C. Bogle who founded Vanguard and offered the first low-cost index mutual fund for ordinary investors. Shame.

Best wishes.
Taylor
Indeed.
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by jainn »

cherijoh wrote:
Taylor Larimore wrote: Not a word about John C. Bogle who founded Vanguard and offered the first low-cost index mutual fund for ordinary investors. Shame.

Best wishes.
Taylor
Indeed.
https://secure.marketwatch.com/story/va ... 2017-02-10
<SNIPPET> from article...
By Sarah Krouse

A spokeswoman for the firm said it is grateful to investors for the assets, but said growth isn’t the firm’s goal.

That rapid growth at Vanguard has led to an increase in client calls and some customer complaints about long wait times, according to the company. Vanguard doesn’t have a network of retail branches like some of its competitors.

Vanguard executives said in a client webinar this year that the firm had received unprecedented phone volumes but that it doesn’t trade cost for service.

“We hate it. We’re doing everything we possibly can to bring those wait times down to acceptable levels,” said Chris McIsaac , managing director of Vanguard’s planning and development group.

Vanguard, which has a staff of about 15,000, hired more than 1,700 new full-time staff members last year and said it expects to hire a similar number of people in 2017.
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by nisiprius »

Taylor Larimore wrote:Not a word about John C. Bogle who founded Vanguard and offered the first low-cost index mutual fund for ordinary investors. Shame.
Yes, Taylor, but also no.

Because what John C. Bogle seems to have done is to have established a culture at Vanguard that, seventeen years and two CEOs after his departure, continues to carry forward his tradition. Vanguard under Bogle wasn't anything like 100% indexing and it isn't today, Vanguard is not perfect, Vanguard responds to trends in the investment business... but it is still different from the rest. Still low costs. Still mostly simply-structured long-only mutual funds. Still cautious and conservative about the assets it chooses to hold in its funds, not reaching out in risky directions. Still more client-focussed than other firms.

Seriously, how many other companies in the investment business would say this? In fact, would any of the publicly-traded mutual fund companies even dare to say it, with their shareholder's listening?
A spokeswoman for the firm said it is grateful to investors for the assets, but said growth isn’t the firm’s goal.
In a way, the biggest unconscious tribute a firm can pay to a founder is to continue the founder's tradition even when they half-forget the founder.

In my opinion, when firms make a big deal about their founder it is because they want to distract your attention from what the firm is really doing now by drawing your attention to what it once was but no longer is.
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Re: Vanguard Reaches $4 Trillion for First Time

Post by LadyGeek »

FYI - I merged Taylor Larimore's thread into here.
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by Uncle Pennybags »

jainn wrote:That rapid growth at Vanguard has led to an increase in client calls and some customer complaints about long wait times, according to the company.
I know investor class clients who waited an hour and a half before giving up with a half hour being common; they called in late December a very busy time. I never had a wait so it appears the "Voyager" phone number gets picked up quicker.

Maybe Bogleheads should be like like "fight club"; rule number one, we never talk about the fight club. :annoyed
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by BrandonBogle »

Uncle Pennybags wrote:
jainn wrote:That rapid growth at Vanguard has led to an increase in client calls and some customer complaints about long wait times, according to the company.
I know investor class clients who waited an hour and a half before giving up with a half hour being common; they called in late December a very busy time. I never had a wait so it appears the "Voyager" phone number gets picked up quicker.

Maybe Bogleheads should be like like "fight club"; rule number one, we never talk about the fight club. :annoyed
Oh wow. I have Voyager status and called a few times in November. I think there was maybe a five minute wait. Whatever the wait was, it was short enough that it didn't even register that I was waiting for long.
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by Alskar »

BrandonBogle wrote:
Uncle Pennybags wrote:Oh wow. I have Voyager status and called a few times in November. I think there was maybe a five minute wait. Whatever the wait was, it was short enough that it didn't even register that I was waiting for long.
In my experience, the issue with poor customer service at Vanguard had nothing to do with long wait times to get help from a CSR and everything to do with incompetent CSR's. No two CSR's would give me the same answer to the same question, for example. Additionally, the website was littered with bugs and inconsistencies. I hold my all-Vanguard ETF portfolio at TD Ameritrade and Fidelity so don't jump to the conclusion that I am against Vanguard; I am not.
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Re: Vanguard Reaches $4 Trillion for First Time

Post by Uncle Pennybags »

As long as all this money is pouring into index funds/ETF Vanguard will have no problem investing it. Managed funds get into big trouble when they get too big. Keep it simple stupid. Of course customer service may suffer growing pains. BTW "BlackRock Assets Pass $5 Trillion as Earnings Climb". So for profits can make it.
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Re: Vanguard Reaches $4 Trillion for First Time

Post by FinanceGeek »

Its great that Vanguard (and passive investing generally) have achieved such preeminence.

That having been said - I choose to hold my Vanguard ETFs at Fidelity. This combines the superior player in passive investing with the superior player in customer relationship management. Best of both worlds.
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by BrandonBogle »

Alskar wrote:In my experience, the issue with poor customer service at Vanguard had nothing to do with long wait times to get help from a CSR and everything to do with incompetent CSR's. No two CSR's would give me the same answer to the same question, for example. Additionally, the website was littered with bugs and inconsistencies. I hold my all-Vanguard ETF portfolio at TD Ameritrade and Fidelity so don't jump to the conclusion that I am against Vanguard; I am not.
Thankfully, I have not had the same experience. I wasn't happy with my scenario where Vanguard unwound a trade after the fact and made me resubmit it it a week later, when the market moved poorly against my trade. But otherwise, servicing has not been a problem.

That said, while I do hold a good chunk of my portfolio at Vanguard, most of it is at WellsTrade invested in Vanguard MFs and ETFs.
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Re: Vanguard Reaches $4 Trillion for First Time

Post by nedsaid »

Wow. 4 Trillion. Vanguard could almost be its own country.
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Re: "Vanguard Hits $4 Trillion Milestone" Not a word about Bogle.

Post by abuss368 »

Taylor Larimore wrote:[Thread merged into here, see below. --admin LadyGeek]

Bogleheads:

This morning, before going sailing, I opened the door and picked-up our Wall Street Journal. On the front page was a large green graph showing the amazing growth of "Vanguard Group's assets under management, in trillions of dollars." Alongside the graph is the headline: "VANGUARD HITS A $4 TRILLION MILESTONE."

Inside the Journal is a lengthy article attributing Vanguard's success:

"The rush to Vanguard is largely the result of a push to embrace funds that mimic broad indexes for a fraction of the cost of traditional actively managed mutual funds."

Not a word about John C. Bogle who founded Vanguard and offered the first low-cost index mutual fund for ordinary investors. Shame.

Best wishes.
Taylor
Hi Taylor -

I did see this and simply it is sad and unfortunate. I am truly perplexed why it is an "issue". Many investors owe Jack a lot as he has fought for the little guy with his crusade to make sure investors earn their fair share.

Best.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Vanguard Reaches $4 Trillion for First Time

Post by abuss368 »

nedsaid wrote:Wow. 4 Trillion. Vanguard could almost be its own country.
Indeed.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Vanguard Reaches $4 Trillion for First Time

Post by Levett »

Bigger is better doesn't do much for me. It's about service, and it would not surprise me a bit if Vanguard's service continues to encounter issues that have already been documented at this site.

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Re: Vanguard Reaches $4 Trillion for First Time

Post by azanon »

MFInvestor wrote:Wall Street Journal Reports:

Vanguard Reaches $4 Trillion for First Time
That's an odd way of putting it. Since I invest with them too, I hope there's not a second or third time, or worst of all, the only time it happened and it'll never happen again. :shock:
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Re: Vanguard Reaches $4 Trillion for First Time

Post by sco »

azanon wrote:
MFInvestor wrote:Wall Street Journal Reports:

Vanguard Reaches $4 Trillion for First Time
That's an odd way of putting it. Since I invest with them too, I hope there's not a second or third time, or worst of all, the only time it happened and it'll never happen again. :shock:
It's not that odd, they reached 4T in assets, the market could drop 1% the next day and they could have 4T several times over the weeks/months coming...
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Re: Vanguard Reaches $4 Trillion for First Time

Post by azanon »

sco wrote:
azanon wrote:
MFInvestor wrote:Wall Street Journal Reports:

Vanguard Reaches $4 Trillion for First Time
That's an odd way of putting it. Since I invest with them too, I hope there's not a second or third time, or worst of all, the only time it happened and it'll never happen again. :shock:
It's not that odd, they reached 4T in assets, the market could drop 1% the next day and they could have 4T several times over the weeks/months coming...
It could, but it wouldn't change the way I would have worded it. "Vanguard Reaches $4 Trillion (in assets under management).", and leave it at that. That it could dip down and come back out, goes without saying, and certainly shouldn't be reflected in the headline! Also, what does the author have against articles? (namely, "the")
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Re: Vanguard Reaches $4 Trillion for First Time

Post by sco »

This is why I am not a Journalist :)
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Re: Vanguard Reaches $4 Trillion for First Time

Post by Uncle Pennybags »

nedsaid wrote:Wow. 4 Trillion. Vanguard could almost be its own country.
They could own about 30% of the national debt.
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