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Best for Beginners

Vanguard Digital Advisor

0.15%

Annual Management Fee

USD3,000

Minimum Investment

0

Platform Fee

4 Vanguard ETFs

Investment Products

up to 0.05%

Expense Ratios

90 Days

Free Waive

Vanguard’s Digital advisor’s annual fees are among the lowest in the industry. Yet, Vanguard doesn’t offer human advisor services and requires a minimum investment amount.

All details

  • Advanced financial planning tools, and debt pay-off calculators help clients set up investment portfolios according to mid-to-long-term financial needs.
  • Vanguard’s financial planning systems can connect to non-Vanguard accounts and present an overall financial scenario based on artificial intelligence calculations.
  • Access to Vanguard’s expertise and trusted ETFs covering stock and bond investments worldwide
  • Auto-rebalancing your asset allocation upon 2% portfolio deviation
  • Offer of retirement accounts like IRAs and employer-sponsored 401(k) plans
  • Vanguard Digital Advisor’s services consider 6 elements: your current age, target retirement age, risk tolerance, loss aversion, marital status, and single stock exposure in financial planning.

You have 90 days fee waiver period, and Vanguard does not charge anything from you.

Pros

  • Vanguard offers the lowest annual fees in town. A yearly fee of 0.15% reduces investors’ costs and increases investment capital for more growth. 
  • Vanguard’s funds of 4 ETFs are reflective of the fund house’s expertise and trustworthy brand name.
  • A low-ratio expense of 0,05% reimbursable to investors makes the investing costs invincible.
  • Innovative systems are in place to help clients set goals and implement investment strategies step by step.
  • A debt pay-off calculator is available for a client to plan for getting rid of debt.
  • Passive investors may like the hands-off investing style.
  • Auto-rebalancing of portfolios serves a client’s effort on investing business and focusing on others instead.

Cons

  • Limited investment choices(only 4 ETFs) and lack of customized options for investors with individual needs. ESG and theme investment products are not on the list.
  • No tax-loss harvesting strategies available to maximise cliens’ return
  • No Vanguard personal advisor services are available, clients may not solve their investing needs by integrating personalized circumstances into the portfolios.
  • The minimum investment amount of USD3,000 is not competitive compared to other rivals with no minimum requirements.
  • No fractional shares are available from Vanguard’s ETFs. Clients have to buy at least one whole share to invest, reducing clients’ ability to take full part in the game.
  • Lack of comprehensive planning tools like college planning or one-off mid-term goal setting
  • No cash management account for idle cash ready for investing. Investors can only park their money in Vanguard’s money market funds.

General Information

Vanguard’s fee structure is simple. An initial gross charge of 0.2% per year applies to taxable, individual retirement accounts(ROTH, traditional and rollover) and employer-sponsored 401(k) plans). Of these, Vanguard will chargeback around 0.05% of fund expenses your account. Thus, an annual net advisory fee of 0.15% applies to a client’s overall management expenses.

Disclaimer: This information may differ from what you see when you visit other financial service websites or the product’s official site, but Loan Advisor continues to keep every detail updated and accurate. This site may be compensated through third-party advertisers. However, the results of our comparison tools which are not marked as sponsored will always be based on objective analysis.

How does Vanguard compare with other Robo advisors in Singapore?

Below are the differences between Vanguard and other Robo advisors in Singapore.

(Vanguard is a registered investment brokerage in the US and does not have an operating business in Singapore.)

Brokerages

Annual fees in Singapore dollars

Trading fees in Singapore dollars

Minimum fees in Singapore dollars

Vanguard

0.15%

0

0

Moomoo

0

0.03%

1.5

Syfe

0

USD1.49 per trade

0

Tiger Brokers

0

0.04%

2.88

Poems

0

0.08%-0.12%

8

DBS Vickers

0

0.18%-0.28%

25

OCBC Securities iOCBC

0

0.18%-0.275%

25

KGI Securities

0

0.18%-0.275%

25

 

Vanguard — Our Verdict

Different from other Robo advisors in Singapore, Vanguard, a federally registered investment advisor in the US, collects a flat annual advisory fee of a total investment amount. Clients pay no additional charges for frequent and minimum trades. 

Besides, investors may increase overall returns due to its simple and lowest-cost structure among other competitors. Vanguard offers clients a user-friendly goal-setting and debt pay-off artificial intelligence systems in planning their finance.

Nevertheless, Vanguard does not offer essential add-on services, like human advising service, and cash management accounts. Investors should seek for professional advice outside and switch idle cash to other money market funds within Vanguard. 

Vanguard’s planning system may lack other services like tax, college planning, covering a broad spectrum of potential prospects compared to other competitors, compared to other competitors, .

How do I open an account with Vanguard?

You must be a US resident of age 21, or have an Army/Fleet/Diplomatic post office address. In addition, you are not retired or will retire within 1 year. You should have cash of US3,000 on hand for registering a Vanguard brokerage account.

Some investors may have one or more tax-advantaged accounts with Vanguard. They need to manage Vanguard brokerage accounts carefully to reach the minimum account requirements. Assets with Vanguard do not count towards minimum requirements for a digital advisor account: non-Vanguard mutual funds, individual bonds, securities traded on international exchanges, preferred stocks, penny stocks, illiquid stocks, and options. Before opening a new account, they need to have their accounts for a thorough Vanguard digital advisor review.

Final Thoughts

Vanguard’s Robo advisor, a member of the Vanguard Group, provides digital advisor managed portfolio services. The artificial intelligence system uses algorithm calculations to manage Vanguard funds held in clients’ portfolios. They fit passive investors and beginners orienting with goal investing with a low-cost feature.

Takeaways:

  • A competitive management fee of 0,15% per year
  • Access to world-class Vanguard ETFs
  • A state-of-art technology system with goal-setting and debt pay-off planning
  • No human advising services are available to clients seeking complex services.
  • No cash management accounts, high minimum investment amount and limited ETF choices

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FAQs

4 ETFs are available to investors:

  1. Vanguard Total Stock Market ETF(VTI): It invests in constituents from the CRSP US Total Market Index. The investments cover large, mid, and small caps and the investing styles include growth and value companies. VTI is committed to fully invested. The expense ratio is 0.03% per year.
  2. Vanguard Total International Stock ETF(VXUS): The ETF tracks the components of the FTSE Global All Cap ex. US index. It invests in companies across developed and emerging markets except for the US and is a well-exposure and diversified ETF worldwide. The expense ratio is 0.08% per year.
  3. Vanguard Total Market Bond ETF(BND): The fund mimicking bonds issued by companies from the Bloomberg Barclays Aggregate Float Adjusted index. It buys bonds including public, taxable, investment-grade, corporate, government, and international dollar-denominated bonds but excluding inflated-adjusted and tax-exempt bonds. The asset also include asset-backed and mortgage-backed securities. The ETF seeks high and steady investment income streams over mid-to-long terms. It may suit stock investing aiming to diversify portfolio risks and increase income. The yearly expense ratio is 0.035%.
  4. Vanguard Total International Bond ETF(BNDX): The ETF covers bonds from the Bloomberg Global Aggregate ex USD Float Adjusted RIC Capped Index(USD Hedged).  The fund invests in bonds outside the US and uses hedging tactics to reduce exchange risks. It remains fully invested. The expense ratio is 0.08% per year.

Vanguard considers long-term and balanced investing in riding out short-term market fluctuations. Besides, an auto-rebalancing approach to managing portfolios keeps investments on track towards goals and increases success probability. 

Once the target allocation floats past a recommended 5% gauge, a rebalancing process will begin. The process triggered aims to keep the asset allocations back on track.

Socially responsible investments are about investing in companies that positively impact on societies. Vanguard digital advisor does not provide the service, and investors may have to look elsewhere for more information about this.

The Robo advisor does not allow other investments except for 4 ETFs. However, Vanguard can provide 2 extra ETFs to the platform if you enroll in a Vanguard brokerage account and a participant account. The added 2 ETFs are Vanguard FTSE Developed Markets ETF and Vanguard FTSE Emerging Markets ETF.

Vanguard FTSE Developed Markets ETF(VEA): The ETF tracks the FTSE Developed All Cap ex US Index. It covers markets,  e.g., the Canadian Stock Market, developed European and the Pacific stock markets. The fund capitalizes on capital growth and involves higher risks. It’s fully invested, and the annual expense ratio is 0,05%.

Vanguard FTSE Emerging Markets ETF(VWO): The global stock ETF invests in growing companies from the FTSE Emerging Markets All Cap China A Inclusion Index. It comes across major emerging markets like China, Brazil, Taiwan, and South Africa. The expense ratio is 0.10% per year. 

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