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Y O U A N D V A N G U A R D
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.
Y O U H A V E M A N Y G O A L S F O R
Your practiceYou’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.
Our advisor’s alpha research can guide your discussions with clients.
It helps clients understand that you can add as much as 3 percentage points of value to their portfolios over time by using key principles, such as behavioral coaching.
Vanguard’s proprietary research helps you stay in the know.
Stay up to date on market and world events with our research, which offers deep dives on topics that matter the most to you. White papers and presentations 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.
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
Vanguard Advisor’s
Alpha™
150+bps
0–105bps
0–120bpsAbout 3%
Vanguard Advisor’s
Alpha
Behavioralcoaching
150+bps
0–105bps Wealth
management
Portfolioconstruction
0–120bps
Behavioralcoaching
Wealthmanagement
Portfolioconstruction
How Vanguard can help
Vanguard mutual funds and ETFs can lower clients’ all-in costs.
Vanguard’s reputation for integrity communicates your commitment to selecting low-cost investments that give your clients the best chance to increase their wealth.
Low cost is in our DNA
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
201520102005200019951990198519801975
0.12%0.17%
0.62%
1.00%
Exp
ense
rat
io (%
)
Morningstar industry asset-weighted average (excluding Vanguard)Lipper industry straight average
Vanguard asset-weighted averageVanguard straight average
Sources: Vanguard; Morningstar, Inc.; and Lipper, a Thomson Reuters Company, as of December 31, 2016.
Spotlight onyour practice
T O O L S A N D
R E S O U R C E S
Spotlight onyour time
T O O L S A N D
R E S O U R C E S
Spotlight onyour clients
T O O L S A N D
R E S O U R C E S
Spotlight for your time
T O O L S A N D
R E S O U R C E S
Spotlight for your clients
T O O L S A N D
R E S O U R C E SSpotlight
for your practice
T O O L S A N DR E S O U R C E S
Leverage expert
commentary
Streamline investing
Adding passive investments to actively managed portfolios Exploring active/passive scenarios via the Portfolio Analytics tool
De�ne value proposition
Wealthmanagement
Loyalty/retention
Portfolioconstruction
Recouptime
Behavioral coaching
Deep and lastingclient relationships
De�ne value proposition
Wealthmanagement
Loyalty/retention
Portfolioconstruction
Recouptime
Behavioral coaching
Deep and lastingclient relationships
Demonstrate your value
Spectrem Group research briefs
Putting a value on your value: Quantifying your value to your clients
Learn about saving for college
ETF Knowledge Center™
ETF Capital Markets Team trading expertise
Quantifying your value to your clients
Vanguard Advisor’s Alpha® tool kit
Quarterly economic and investment outlook
Advisor continuing education credits
Vanguard Blog for AdvisInsights and updates for financial professionals
Home Economy & Markets ETFs Portfolio Const
The greatest risk in the marketJoe Davis I September 29, 2014 I Topics: Economy & Mar
Vanguard ETF® strategic model portfolios
Portfolio Analytics tool and consulting services
Vanguard Retirement Plan Access™ Small Market 401(k)
Investor Education guides
SensitiveYou added 6 product. Click Apply to see results.
100%
Advice about social media
Y O U H A V E M A N Y G O A L S F O R
Your timeIf 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.
Your to-do list is 20 items long—and growing.
You are wondering how a turbulent stock market will affect plans to sell a client’s ETF. You need to prepare for three client meetings. And you’re wishing you were able to attend an industry conference you found invaluable last year.
How Vanguard can help
You check in at Vanguard’s ETF Knowledge Center.
You read up on how market volatility affects bid-ask spreads. Because your client’s trade is large, you call Vanguard’s ETF Capital Markets Team to help ensure the best execution.
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
Next up: You prep for client meetings.
You hop on to Vanguard’s Portfolio Analytics tool to create customized reports, complete with clients’ names and holdings.
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
You have some extra time.
You read the latest financial research on Vanguard’s LinkedIn page for financial advisors and check out the Vanguard Advisors Twitter feed for updates from that industry conference you couldn’t attend. It’s almost like being there.
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.
You use Vanguard’s time-saving products and services.
This allows you to put more resources where they matter most—into getting to know your clients and developing new ones.
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
Spotlight onyour practice
T O O L S A N D
R E S O U R C E S
Spotlight onyour time
T O O L S A N D
R E S O U R C E S
Spotlight onyour clients
T O O L S A N D
R E S O U R C E S
Spotlight for your time
T O O L S A N D
R E S O U R C E S
Spotlight for your clients
T O O L S A N D
R E S O U R C E SSpotlight
for your practice
T O O L S A N DR E S O U R C E S
Leverage expert
commentary
Streamline investing
Demonstrate your value
Global Macro Matters: Short economic updates
One of the industry’s largest wholesale sales forces
Vanguard Client Relationship Center™
Advisor continuing education credits
Vanguard ETF strategic model portfolios
Portfolio Analytics tool and consulting services
Vanguard’s advisor app
www.abcadvisors.com 100 Main Street • Anywhere, USA 12345 • 123.456.7890
Hours: Monday through Friday 9:00am - 5:00pm
How we communicate with youWe 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 structureOur 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
Additional charges may apply based on planning needs. Consult your advisor for fee arrangements specific to your circumstances.
Our servicesWe offer a range of planning resources and services to help you reach your goals:
• Comprehensive portfolio management• Periodic reviews • Financial planning • Investment strategies
• Ongoing investment monitoring• Insurance solutions • Cash flow and tax planning • Coordination with other professionals
• Wealth management • Income distribution • Estate planning • Retirement planning
Prepared for: Mr. and Ms. John and Jane Doe
Our commitment to youWe are dedicated to helping you achieve your investment goals by providing personal attention and quality services.
How we help you succeedWe provide cost-efficient portfolio construction, comprehensive wealth management, and ongoing discussions to earn your confidence and help you achieve your goals.
Discuss options
Create and implement your plan
Monitor your plan
Discuss updates and observations
Gather information about your situation
Evaluate your
situation
Understand your goals
REACH YOUR GOALS | MAINTAIN CONFIDENCE | BALANCE RISK, REWARDS
Jane C. Smith, CFP®
Vanguard’s advisor website
Portfolio Review Group
Social media updates
Research & commenInfographicApril 7, 2015
Learn more aboutredefining how ad
Fairly anaApril 6, 2015
Jim Rowley discutracking error.
Vanguard Blog for Advisors™
Customizable client documents
Van
Home
Client Relationship Center™
Resources for building a stronger client engagement™
®
• Create and evaluate client portfolios
• Compare two portfolios
• Create and add a custom benchmark
Quick info
Vanguard Portfolio Analytics
Thought leadership
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
It’s7 a.m.
Providefee flexibility
Keep up with trends
Marketcheck
Clientprep
Getsocial
X Timesaved
Buildyour practice
XXXX Tailoredapproach
X Addedvalue
X Sterlingreputation
X
Spotlight for your practice
T O O L S A N DR E S O U R C E S
Y O U H A V E M A N Y G O A L S F O R
Your clientsYou know that beating the market is tough. You do so much more than pick investments. You coach your clients to achieve their goals, teach them to be persistent and disciplined about investing, and counsel them about complex financial decisions. You need products and services that build wealth and help you explain the value you create.
Clients know and recognize 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.
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.
How Vanguard can help
Spotlight onyour practice
T O O L S A N D
R E S O U R C E S
Spotlight onyour time
T O O L S A N D
R E S O U R C E S
Spotlight onyour clients
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Spotlight for your time
T O O L S A N D
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Spotlight for your clients
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R E S O U R C E SSpotlight
for your practice
T O O L S A N DR E S O U R C E S
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, 2016: For the period, 206 of 224 Vanguard funds outper-formed 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, 2016: For the period, 23 of 27 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, 2016.
Leverage expert
commentary
Streamline investing
VTI
BNDX
BIV
VWO
VWO
VTV
VUG VOO
VONV
VXUS BND VONG
VB BLV
VXF
VMBS
VSS
BSV VTWO VEA
VO VONE VTWO VV VEU
VGSH VT VGLT VCR VCLT VCIT VWOB MGV
VOX
Demonstrate your value
Vanguard Investment Strategy Group research
Putting a value on your value: Quantifying your value to your clients
Learn about indexing
BEH AV IOR A L COACHING
VanguardAdvisor’sAlpha™
Portfolio comparison and other tools
Vanguard Blog for Advisors™
Vanguard client-approved materials
Vanguard trading experts can help ensure smooth trade execution
U.S. investors should consider the potential diversification benefits of investing in other countries’ equity markets. Less-than-perfect 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
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 Brazil, India, and China, made 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,
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.
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.
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).
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.
Global equities: Balancing home bias and diversification Fourth quarter 2014
FOR FINANCIAL ADVISORS AND INSTITUTIONS ONLY. NOT FOR PUBLIC DISTRIBUTION.
1 Sources: Thomson Reuters Datastream and MSCI.
Vanguard Client Relationship Center™
Winning the advisor’s gameFamed investor Charles Ellis explains how financial advisors can succeed by focusing on individual clients’ needs and priorities.
Spring 2015
ETF Perspectives Vanguard insights for financial advisors™
Strong reputation of Vanguard mutual funds and ETFs
Vanguard wholesalers available to provide data and answer questions quickly
Articulating your value
Clients value long-term performance
Over the last ten years
of all Vanguard funds outperformed their Lipper peer-group averages1
of all Vanguard ETFs® outperformed their Lipper peer-group averages2
92%85%
More advisors, and their clients, are choosing Vanguard
35%$3.9 trillion assets under management3
Vanguard Financial Advisor Services
About $1 of every $3 invested at Vanguard comes through a financial advisor
$3.1trillion1
Building your investment
StructuresLearn how ETFs are organized fromwell as the tax implications of the var
20162007
$1.4 trillion
$260 billion
Vanguard Financial Advisor Services™
Assets under management
Source: Vanguard, as of December 31, 2016.
Contact Vanguard Financial Advisor Services at 800-997-2798 or visit us on the web at advisors.vanguard.com
Want more?
You and VanguardAligned for your clients’ success
© 2017 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 062017
Vanguard Financial Advisor ServicesTM
P.O. Box 2900Valley Forge, PA 19482-2900
All investing is subject to risk, including possible loss of principal.
Past performance is not a guarantee of future returns.
Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. 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.
For more information about Vanguard funds and Vanguard ETF Shares, visit advisors.vanguard.com or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
Connect with Vanguard® > advisors.vanguard.com > 800-997-2798
Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
FOR FINANCIAL ADVISORS AND INSTITUTIONS ONLY. NOT FOR PUBLIC DISTRIBUTION.