Why have clients trusted Vanguard with more than USD 5 trillion*?
Vanguard's mission is to take a stand for all investors, to treat them fairly and to give them the best chance for investment success. But what sets us apart and lets us deliver on that promise?
Vanguard's unique ownership structure aligns our interests with the interests of our clients. The Vanguard Group, Inc. in the US was founded on the simple but revolutionary idea that we should manage the funds we offer in the sole interests of our clients. Unlike other investment management companies, we don't have public shareholders or private owners expecting dividends. We are owned by our US-domiciled funds, which in turn are owned by their investors.
Since Vanguard has no third-party owners, we either reinvest profits into our business or pass them to our fund investors in the form of lower fund costs. We have no conflicting interests and can stay focused on doing what's best for our clients. The most tangible benefit to our clients is low costs, and we are able to offer these low costs due to the Vanguard structure.
With a typical fund management company
* Source: Vanguard, as at 31 July 2018.