The Case for Vanguard

[roi2020]

"New Vanguard doesn’t look much like old Vanguard.
Whether it’s selling advice, launching high-conviction active funds only for advisory clients, or offering private equity, it is different.

"What’s also different is that many longtime observers have now begun to question the company.
Morningstar’s John Rekenthaler proposed that Vanguard has lost its way, while the Wall Street Journal’s Jason Zweig charged it in at least one instance with failing the small investors whom Vanguard founder Jack Bogle championed."

"Negative sentiments rest on two pillars: industry rivalries’ corrosive influence and present-day Vanguard falling short of its former self.
Despite some merit, both pillars struggle to bear the weight placed upon them."

Link

[retiredat48]

I have been with Vanguard since inception...1970's.

I agree some serious flaws...and note Fido has some similar ones.

Vanguard customer service declined a lot. If I had one wish for Vanguard it would be: STOP ADVERTISING AND ALL OTHER EFFORTS TO BRING IN NEW MONEY. They cand't handle the billions and billions coming in. Can't and/or wont hire enough people to handle the new shareholders.

As an investor-owned company, no need to get new money, except to fill the money pockets of current managers. Stop it. Use word-of-mouth only.

And as for Fidelity's main flaw (I have accounts in each)...it is that they have not lowered expense ratios much after having taken in billions and billions for many of their funds.  (That's how Abby Johnson, daughter of founder, is worth multi billions in wealth).

R48

[roi2020]

I've only been with Vanguard for about a decade.
I've read many stories regarding Vanguard customer service issues on message boards and in Daniel Wiener's "The Independent Adviser for Vanguard Investors."
I'm a self-directed investor who hasn't personally experienced issues with account transfers, transactions, statements, inaccuracies, etc.
I almost always used the chat feature the few times that I needed to contact Vanguard.
My only issue that I recall is that it took an exceedingly long time to confirm/update my Vanguard client status.
I dislike Vanguard's investor website - it's "clunky" and the tools/user interface could be improved in my opinion.

On the other hand, I really like Fidelity's website where I have several accounts.
Fidelity's passive funds often have low expense ratios.
However, Fidelity could lower expense ratios for many of its actively managed funds where AUM are high.  

[hondo]

 

I have been at Vanguard since 2011, and found the service overall good. There has been some delays in reaching a agent, but I like the option of leaving my telephone number and having them return my call in order. I am okay with that. I did have a problem a while back in adding a new bank account to my VG accounts. Turned out to be a problem at my bank, not at VG, however in talking with VG agents, over several days, I talked to two ladies that were located overseas. I don't think I have ever worked with a VG agent located in a foreign country before. I was a little disappointed as I thought all VG agents were located in the US.

It would be almost impossible to leave VG because of the CGs in our taxable accounts.

[Chahta]

I have seen a major call center for Schwab in Denver. They have quite a big campus there. They also have other locations as well. The day I start talking to foreigners I that I can’t understand I will make a move somewhere. Talking about my money is a he!! of a lot more important than talking about support for FuboTV.

[retiredat48]

Two years ago I was with a financial advisor I had mentored, who is now operating a few miles from Vanguard HDQTRS. We visited a HUGE building being completed by Vgd.--Vgd had plans to hire a thousand people there (Phila suburbs). But customer service still lags. Of course, it may be lagging everywhere for all financial firms. We just hear about it at Vangd and Fido because of Forum postings.

I was put on hold today by various banks, utilities, medical offices etc---it's everywhere. So we need to see how things are after covid winds down some.

R48

[anitya]

Jan 28, 2022 23:29:13 GMT hondo said:

 

I have been at Vanguard since 2011, and found the service overall good. There has been some delays in reaching a agent, but I like the option of leaving my telephone number and having them return my call in order. I am okay with that. I did have a problem a while back in adding a new bank account to my VG accounts. Turned out to be a problem at my bank, not at VG, however in talking with VG agents, over several days, I talked to two ladies that were located overseas. I don't think I have ever worked with a VG agent located in a foreign country before. I was a little disappointed as I thought all VG agents were located in the US.

It would be almost impossible to leave VG because of the CGs in our taxable accounts.

I recently moved some assets in my VG taxable account to another brokerage.  I took a picture of the cost basis at VG and checked to make sure the cost basis at the new place is the same.  No problems.  Ironically, VG is very good about letting assets go (the opposite of hotel CA)!

I used to worry about shipping US jobs overseas.  Also, I used to be very apprehensive of talking to agents outside the US but now I look forward to it because I do not get good service from agents in the US and the foreign ones are very polite, smart, and show good attitude.  I bet the foreign ones are more educated / qualified (may be high unemployment) than the ones in the US.  I have had so many agents in the US with such bad attitude and arrogance (compensating for low skill, I guess), especially once they started working from home.  A few times, I talk to the supervisor and tell them their sub needs more training.  When I speak with the foreign ones, I never have to escalate to the supervisor.  These days (the younger generation) the whole world speaks very good English and I am glad for it.