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YOU AND VANGUARD
Aligned for
your clients’
success
FOR FINANCIAL ADVISORS AND INSTITUTIONS ONLY. NOT FOR PUBLIC DISTRIBUTION.
Your day is long and challenging. You take care
of your practice, your employees, your clients,
and your friends and family. Once in a while,
you have time for yourself.
Your industry is changing, giving clients more
alternatives—and you more competition.
Your goals are big. You do so much more than
financial planning. You are a business owner,
a leader in your community, and a behavioral
coach. You are the trusted voice of reason
for your clients.
Here’s how Vanguard can help.
YO U H AV E M A N Y G OA L S F O R
Your practice
You’re building your practice so clients win and you do too. As an advisor, you look
to differentiate your value, stave off your competition, and increase your income.
We share your goals and are aligned with you to help build your practice.
How Vanguard can help
TOOLS AND
RESOURCES
Spotlight
for your practice
Time
saved
Keep up
with trends
Provide
fee flexibility
It’s
7 a.m.
Market
check
Build
your practice
0–120
bps
Portfolio
construction
terling 0–105
putationbps
Our advisor’s alpha
Behavioral
research
can
guide your
coaching
Vanguard
Advisor’s
discussions
with
clients.
Alpha
Vanguard’s proprietary research
helps you stay in the know.
0–120
bps
Abou
t 3%
Portfolio
construction
150+
It helps clients understand
that you
bps
X
can add as much as 3 percentage 0–105
bps
Wealth
management
points of value to their portfolios
over time by using key principles,
such as behavioral coaching.
Vanguard
Advisor’s
Alpha™
Behavioral
coaching
150+
bps
Wealth
management
X
Stay up to date on market and world events with
our research, which offers deep dives on topics that
X most to you. WhiteX papers and presentations
X
matter the
are master classes on key subjects, such as ETFs,
portfolio construction, wealth management, and
generational planning. Our partnerships with outside
research firms, such as Spectrem Group, give you
insights into client behavior.
Tailored
approach
eep up
h trends
Provide
fee flexibility
It’s
7 a.m.
Market
check
Client
prep
Demonstrate
your value
X
Low cost is in our DNA
Average expense ratios1
1.08%
0.89%
Spotlight on
your time
Added
value
Leverage
expert
commentary
All funds
1.02%
Time
saved
Portfolio
construction
Vanguard
Advisor’s
Alpha™ tool kit
Deep and lasting
client relationships
Loyalty/
retention
Quantifying
your value to
your clients
Recoup
time
Behavioral
coaching
Putting a value on
your value: Quantifying
your value to your clients
Portfolio
construction
Deep and lasting
client relationships
Loyalty/
retention
Build
your practice
Recoup
time
X
Learn about
saving for
college
Investor
Education
guides
Sterling
reputation
Behavioral
coaching
Spectrem
Group
research briefs
ETF
Knowledge
Center™
Vanguard Retirement
Plan Access™
Small Market 401(k)
X
Advice about
social media
Vanguard Blog for Advis
Insights and updates for financial professionals
Home
Economy & Markets
ETFs
Portfolio Const
The greatest risk in the market
Quarterly economic
and investment
outlook
Advisor
continuing
education credits
Joe Davis I September 29, 2014 I Topics: Economy & Mar
Vanguard
0.18%
2014
1975
All funds
Vanguard
1 Represented as a percentage of net assets.
Sources: Lipper, a Thomson Reuters Company, as of December 31, 2014.
1.50%
Wealth
management
Wealth
management
X
Spotlight on
your practice
X
De ne value
proposition
Vanguard’s reputation for integrity communicates
your commitment to selecting low-cost investments
X
that giveXyour clients the best chance
to increase Tailored
approach
their wealth.
TOOLS AND
RESOURCES
Get
social
De ne value
proposition
Vanguard mutual funds and ETFs
can lower clients’ all-in costs.
TOOLS AND
RESOURCES
Streamline
investing
Vanguard ETF®
strategic model
portfolios
6
You added product.
Click Apply to see results.
100
%
Portfolio Analytics
tool and consulting
services
ETF Capital Markets
Team trading expertise
Adding passive investments
to actively managed portfolios
Exploring active/passive scenarios via the Portfolio Analytics tool
Sensitive
YO U H AV E M A N Y G OA L S F O R
Your time
If only you had more. Every day, every minute is spoken for. You need an investment
partner that can help you make efficient decisions so you have more time to deepen
client relationships and expand your practice.
How Vanguard can help
ovide
flexibility
D
S
t
ctice
It’s
7 a.m.
Keep up
with trends
Market
check
Provide
fee flexibility
Your to-do list is 20 items
long—and growing.
TOOLS AND
RESOURCES
X
Client
prep
It’s
7 a.m.
Keep up
trends
You are wondering how a turbulent
Spotlight
stock market
affect
plans to sellwith
forwill
your
practice
X
a client’s ETF. You need to Tailored
prepare
for three client meetings. approach
And you’re
wishing you were able to attend
X found
an X
industry conference you
invaluable last year.
X
Get
social
X
X
X
Market
check
Client
prep
Provide
It’s
You check in at Vanguard’s
fee flexibility
7 a.m.
ETF Knowledge
X
Added Center.
X
You read upvalue
on how market volatility
affects bid-ask spreads. Because
your Tailored
client’s trade is large, youXcall
approach
Vanguard’s
ETF Capital Markets Team
to help ensure the best execution.
X
X
Time
saved
Build
your practice
Get
social
Market
check
X
Sterling
reputation
Client
prep
Time
saved
X
Added
X
value Next up: You prep
for client meetings.
Tailored
approach
Get
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your
X
Sterling
reputation
You hop on to Vanguard’s Portfolio
Analytics tool to create customized
Added
reports, X
complete with clients’
names
value
and holdings.
X
t
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Get
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Added
value
X
X
X
Time
saved
Build
your practice
You use Vanguard’s
time-saving products
Build
and Time
services.
saved
your practice
This allows you to put more
Sterling
X
resources where they matter most—
intoreputation
getting to know your clients
TOOLS AND
TOOLS AND
TOOLS AND
RESOURCES
RESOURCES
RESOURCES
Spotlight on
your practice
Spotlight on
your time
Spotlight on
your clients
Prepared for:
Vanguard Client
Relationship
Center™
During a review, a client expresses
interest in a short-term bond fund.
You tap the Vanguard for Advisors app
on your tablet to bring up data about
options in that fund category. You
also share client-approved materials
on bond investing from Vanguard’s
advisor website.
X
Our commitment to you
We are dedicated to helping you achieve your investment goals
by providing personal attention and quality services.
How we help you succeed
We provide cost-efficient portfolio construction, comprehensive wealth management, and ongoing
discussions to earn your confidence and help you achieve your goals.
Understand
your goals
Gather
information
about your
situation
Evaluate
your
situation
REACH YOUR GOALS
|
Discuss
options
Create and
implement
your plan
MAINTAIN CONFIDENCE
|
Monitor
your plan
Discuss
updates and
observations
BALANCE RISK, REWARDS
Our services
We offer a range of planning resources and services to help you reach your goals:
• Wealth management
• Income distribution
• Comprehensive portfolio management
• Periodic reviews
• Ongoing investment monitoring
• Insurance solutions
• Financial planning
• Investment strategies
• Cash flow and tax planning
• Coordination with other professionals
• Estate planning
• Retirement planning
How we communicate with you
We offer scheduled planning reviews, regular check-ins, ongoing education opportunities, and an informative
client newsletter. You can also count on a response within 24 hours whenever you contact us with a question
or concern.
Our fee structure
Resources for building a stronger client engagement™
Our investment advisory practice is fee-based. Our annual advisory fees are calculated simply as a
percentage of assets under management. Our fees are not based on trading activity or commissions.
The table below reflects what our fees may look like for you.
AMOUNT MANAGED
ADVISORY FEE
FEE CALCULATION
Up to $X
X%
$X
$X to $X
X%
$X to $X
More than $X
X%
$X
100 Main Street • Anywhere, USA 12345 • 123.456.7890
Hours: Monday through Friday 9:00am - 5:00pm
Vanguard’s
advisor
website
You have some extra time.
Sterling
reputation
Client Relationship Center™
Customizable
client documents
Additional charges may apply based on planningwww.abcadvisors.com
needs. Consult your advisor for fee arrangements specific to your circumstances.
and developing new ones.
You read the latest financial research
on Vanguard’s LinkedIn page for
financial advisors and check out the
Added
Vanguard
Advisors Twitter feedXfor
updates
from that industry conference
value
you couldn’t attend. It’s almost like
being there.
Mr. and Ms. John and Jane Doe
Jane C. Smith, CFP®
Demonstrate
your value
Leverage
expert
commentary
Vanguard’s
advisor
app
Research & commen
Advisor continuing
education credits
Global Macro
Matters: short
economic updates
Vanguard
Blog for
Advisors
Infographic
April 7, 2015
Learn more about
redefining how ad
Fairly ana
April 6, 2015
Jim Rowley discu
tracking error.
Social media
updates
®
Van
Thought
leadership
Portfolio
Review
Group
Home
Streamline
investing
Vanguard ETF strategic
model portfolios
One of the industry’s
largest wholesale
sales forces
Portfolio Analytics
tool and consulting
services
Vanguard Portfolio Analytics
• Create and evaluate client
portfolios
• Compare two portfolios
• Create and add a custom
benchmark
Quick info
YO U H AV E M A N Y G OA L S F O R
Your clients
Provide
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It’s
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check
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How Vanguard can help
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Your clients appreciate
how well you know them.
At the Vanguard Client Relationship Center,
you will find all the tools, materials, and coaching
tips you need to cultivate client relationships,
including onboarding and investment-review
documents, ideas for discussing the value you
add, and helpful hints for teaching clients key
investing principles.
Added
value
Added
value
X
X
Sterling
X
reputation
Sterling
XClients know and recognize
reputation
the Vanguard name.
Clients know that you use Vanguard mutual funds
and ETFs because they are widely recognized for
providing strong relative performance at low cost.
Our brand builds your brand. Clients can appreciate
how carefully you listen and then create plans that
help them achieve their goals.
Vanguard Advisor’s Alpha materials
help your clients see the benefits
of your philosophy.
With these materials, clients learn about how
you can help them increase their wealth through
behavioral coaching, portfolio rebalancing, and
other best practices. This may lead them to
recommend you to their friends.
Vanguard
Reputation
e
ility
It’s
7 a.m.
X
Time
saved
Select Sector SPDRS iShares SPDRs
PowerShares
Schwab
PIMCO
ProShares
WisdomTree
FlexShares
Familiarity
Source: Wall Street Journal Marketing Department survey of subscribers
screened for mutual fund ownership. Survey results are based on 1,048
total respondents fielded between May and July 2014.
TOOLS AND
TOOLS AND
TOOLS AND
RESOURCES
RESOURCES
RESOURCES
Spotlight on
your practice
Spotlight on
your time
Spotlight on
your clients
Clients value long-term performance
Over the last ten years
93%
80%
of all Vanguard funds outperformed
their Lipper peer-group averages1
of all Vanguard ETFs ® outperformed
their Lipper peer-group averages2
More advisors, and their clients, are choosing Vanguard
Assets under management through
Vanguard Financial Advisor Services™
$1 trillion
Demonstrate
your value
$1,250B
Portfolio comparison
1,000tools
and other
Vanguard Client
Relationship Center™
750
Articulating your value
500
$260 billion
$11 billion
2007
B E H AV I O R A L C O A C H I N G
Putting a value on
250 your value: Quantifying
your value to your clients
0
$410 billion
Vanguard
Advisor’s
Alpha
™
Learn about
indexing
2014
Vanguard Financial Advisor Services (includes ETFs)
Vanguard ETFs
Sources: Vanguard, as of December 31, 2014.
Leverage
expert
commentary
Global equities: Balancing home
Vanguard Investment
bias and diversification
Strategy Group
research
Fourth quarter 2014
U.S. investors should
consider the potential
diversification benefits of
investing in other countries’
equity markets. Less-thanperfect correlation of other
developed economies’ equity
markets with the U.S. equity
market produces returns
that can vary from the
returns of U.S. stocks alone.
This paper summarizes the
existing Vanguard research
Global equities: Balancing
home bias and diversification
(Philips, 2014).
Equities not domiciled in the United States
accounted for 51% of the global equity
market as of December 31, 2013,1 reflecting
a significant opportunity for portfolio
diversification.
Although no one answer fits all investors,
empirical and practical considerations
suggest a reasonable starting allocation
to non-U.S. stocks of 20%, with an upper
limit based on global market capitalization,
subject to the investor’s perspective on the
short- and long-term trade-offs.
The case for investing in non-U.S. stocks
Vanguard Blog
for Advisors
About $1 of every $3 invested at
$3.1
Vanguard comes through a financial advisor
trillion assets
under management 3
34%
All else being equal, U.S. investors should
realize a diversification benefit from investing
globally because the equity markets of other
developed economies are less-than-perfectly
correlated with the U.S. equity market. These
differing economies and markets produce
returns that can vary from those of U.S. stocks.
ETF Perspectives
As of December 31, 2013, non-U.S. equities,
including those of developed countries such as
Germany, Japan, and the United Kingdom, plus
those of emerging markets countries such as
Vanguard
insights
financial
advisors™
Brazil, India, and
China, madefor
up 51%
of the
global equity market.
Despite the size of non-U.S. equity markets
(as shown in Figure 1, on page 2), U.S. mutual
fund investors, on average, held only 27%
of their total equity allocations in non-U.S.domiciled funds as of year-end 2013, according
to Morningstar, Inc. Although this is within
the 20% to 40% range we recommend, it
falls at the lower end of that range. While U.S.
investors, on average, are not exploiting the
optimum benefits of global diversification,
While individual countries experience greater
volatility at times than that of the United States,
the broad MSCI World Index ex USA (which
focuses on developed markets) has experienced
volatility similar to that of the United States
(as shown in Figure 2, on page 2).
Spring 2015
The broadest global index—representing the
combined MSCI USA Index, the MSCI World
Index ex USA, and the MSCI Emerging
Markets Index—has experienced the lowest
average volatility.
Winning the advisor’s game
Structures
Learn how ETFs are organized from
well as the tax implications of the var
Famed investor Charles Ellis explains how
financial advisors can succeed by focusing
on individual clients’ needs and priorities.
1 Sources: Thomson Reuters Datastream and MSCI.
trillion1
$3
their portfolios are more diversified than those
who invest solely in the U.S. stock market
and exclude more than one-half of the global
opportunity set.
The rationale for diversification of investment
across a global market is clear. U.S. stocks are
exposed to U.S. economic and market forces,
while stocks domiciled outside the United
States offer exposure to a wider array
of economic and market forces.
Vanguard
client-approved
materials
FOR FINANCIAL ADVISORS AND INSTITUTIONS ONLY. NOT FOR PUBLIC DISTRIBUTION.
Vanguard Financial
Advisor Services
BIV
VTWO
Streamline
investing
1 Source: Lipper, a Thomson Reuters Company. Number of Vanguard funds that outperformed their Lipper peer-group
averages for the ten-year period ended December 31, 2014: For the period, 181 of 194 Vanguard funds outperformed their Lipper peer-group averages. Results will vary for other time periods. Only funds with a minimum ten-year
history, were included in the comparison.
2 Source: Lipper, a Thomson Reuters Company. Number of Vanguard ETFs that outperformed their Lipper peer-group
averages for the ten-year period ended December 31, 2014: For the period, 16 of 20 Vanguard ETFs outperformed
their Lipper peer-group averages. Results will vary for other time periods. Only ETFs with a minimum ten-year
history were included in the comparison.
Note that the competitive performance data shown represent past performance, which is not a guarantee
of future results, and that all investments are subject to risks. For the most recent performance, visit our
website at vanguard.com/performance.
3 Vanguard’s total assets under management, as of December 31, 2014.
Strong reputation
of Vanguard mutual
funds and ETFs
VO
VUG
BLV
VONG
VTI
VTV
BNDX
VCR
VCIT
VT
VWO
VV
VONE
VB
VMBS
Vanguard trading experts
can help ensure smooth
VWO
trade execution
MGV
VXUS
VOO
BND
VOX
VEA
VCLT
VEU
VTWO
VXF
VONV
VWOB
VGLT
BSV
VSS
VGSH
Vanguard wholesalers available
to provide data and answer
questions quickly
Building your
investment
Want more?
Contact Vanguard Financial Advisor Services
at 800-997-2798 or visit us on the web
at advisors.vanguard.com
You and Vanguard
Aligned for your clients’ success
Vanguard Financial
Advisor ServicesTM
Connect with Vanguard® > advisors.vanguard.com > 800-997-2798
Vanguard ETF Shares are not redeemable with the issuing
Fund other than in very large aggregations worth millions
of dollars. Instead, investors must buy or sell Vanguard ETF
Shares in the secondary market with the assistance of a
stockbroker. In doing so, the investor may incur brokerage
commissions and may pay more than net asset value when
buying and receive less than net asset value when selling.
P.O. Box 2900
Valley Forge, PA 19482-2900
All investing is subject to risk, including possible loss
of principal.
Past performance is not a guarantee of future returns.
For more information on Vanguard funds and ETF
Shares, visit our website or call 800-997-2798 to
obtain a prospectus. Investment objectives, risks,
charges, expenses, and other important information
are contained in the prospectus; read and consider
it carefully before investing.
FOR FINANCIAL ADVISORS AND INSTITUTIONS ONLY. NOT FOR PUBLIC DISTRIBUTION.
Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
© 2015 The Vanguard Group, Inc. All rights reserved.
U.S. Patent Nos. 6,879,964; 7,337,138;
7,720,749; 7,925,573; 8,090,646; and 8,417,623.
Vanguard Marketing Corporation, Distributor.
FAPASB 052015