Vanguard has significantly cut its minimum asset threshold for investors to access its robo advisor service, Digital Advisor, from $3,000 to $100.
The move announced on Sept. 4 widens the firm's reach to more DIY investors, who tend to utilize digital advice services. This segment is also more often populated by people from younger generations who are comfortable with digital investing and often use it as an easier investor entry point.
"Lowering the investment minimum for Vanguard Digital Advisor is an important step in our endeavor to broaden investors' access to advice, and to empower them earlier in their financial journey," said Brian Concannon, head of Vanguard Digital Advisor, in the press release. "We believe that advice strengthens investors' ability to navigate their personal finance and investment needs, and can drive better investment outcomes."
Vanguard, based in Valley Forge, Pennsylvania, joins a growing number of firms that are trying to capture more than $80 trillion in assets projected to move to the younger generations in what's being called the
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Oftentimes the younger generations start as DIY digital investors, and then they increasingly demand more personalized advice. A
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Vanguard has also beefed up its Digital Advisor platform, which launched in 2020, to include more personalized financial coaching, broader portfolio options and streamlined couples planning. The robo advisor platform had more than $19 billion in assets under management, as of June 30.
"We understand the needs of our investors are ever-changing, and we are dedicated to continuously evolving and innovating our advice offers to ensure clients have the tools, guidance, and importantly, the access, they need to achieve their financial goals," said Doug Mento, head of Vanguard Advice, in the release.
