Vanguard advertising in WSJ

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retired@50
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Vanguard advertising in WSJ

Post by retired@50 » Tue Oct 08, 2019 12:50 pm

Has anyone else noticed the recent advertisements for Vanguard in the Wall Street Journal print edition lately? Who pays for these? I'm a Vanguard "client-owner" and I didn't authorize this... Hopefully this cost isn't coming out of the investors pockets. Where does the money come from?

Thoughts...

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David Jay
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Re: Vanguard advertising in WSJ

Post by David Jay » Tue Oct 08, 2019 1:04 pm

I see this is the first thread you have started. Welcome to the forum!

I have been a Vanguard client for many years. They have had an advertising budget for a very long time, and I am confident that they place ads where they believe they will get maximum benefit for the dollars spent.
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averagedude
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Re: Vanguard advertising in WSJ

Post by averagedude » Tue Oct 08, 2019 1:12 pm

Im a member of a credit union, which is a co-op that offers banking services for the benefit of its members, and they advertise without my permission. Im sure that most of these co-ops have advertising budgets. In theory, the more members they have, the better benefits they can offer to their owners.

Silk McCue
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Re: Vanguard advertising in WSJ

Post by Silk McCue » Tue Oct 08, 2019 1:12 pm

We don't get a vote on how they advertise their offerings to attract new customers. We also don't get a vote on how much they pay Executives, employees, rent, office equipment, utilities or anything else. The money to fund all these things is paid for in the dirt cheap expense ratios that are charged on our investments and fees generated from those that make trades that aren't free and quite a few other things I am certain.

Fidelity advertises, Schwab advertises, everyone advertises to attract new customers.

Cheers

jebmke
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Re: Vanguard advertising in WSJ

Post by jebmke » Tue Oct 08, 2019 1:17 pm

VG pops up from time to time on news apps and news web sites I get on my iPad. I never use the iPad for financial tasks so it isn't a tracker unless their trackers can jump from one device to another (different browsers too so not saved history). Maybe they can.
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UpperNwGuy
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Re: Vanguard advertising in WSJ

Post by UpperNwGuy » Tue Oct 08, 2019 1:19 pm

If you own VTSAX, you’re an owner of 3,500 publicly traded US companies. Did a single one of those companies ask you to approve their advertising budget?

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retired@50
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Re: Vanguard advertising in WSJ

Post by retired@50 » Tue Oct 08, 2019 1:22 pm

Silk McCue wrote:
Tue Oct 08, 2019 1:12 pm
We don't get a vote on how they advertise their offerings to attract new customers. We also don't get a vote on how much they pay Executives, employees, rent, office equipment, utilities or anything else. The money to fund all these things is paid for in the dirt cheap expense ratios that are charged on our investments and fees generated from those that make trades that aren't free and quite a few other things I am certain.

Fidelity advertises, Schwab advertises, everyone advertises to attract new customers.

Cheers
Thanks for the response. I see Vanguard as different from Fidelity or Schwab since Vanguard is a "not for profit" enterprise and is supposed to be run "at-cost" as far as I know. The advertising budget could be seen as a 12b-1 fee without the same disclosure.

I too am a long time Vanguard client, and have enjoyed the low fees for over 20 years... Kind regards,

rossington
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Re: Vanguard advertising in WSJ

Post by rossington » Tue Oct 08, 2019 1:22 pm

You might want to check your accounts.... :twisted:
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Re: Vanguard advertising in WSJ

Post by LadyGeek » Tue Oct 08, 2019 6:23 pm

This thread has run its course and is locked (conjecture on a company's marketing strategy is not investment related, not actionable). See: Investing - Theory, News & General
If it's investment related and it doesn't fall into the above category it goes here. Examples of acceptable topics include news about new fund offerings, pointers to academic papers about investing issues, questions about the proper role of a particular asset class in a portfolio, or questions about Vanguard policies.
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