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Of the 18 robo-advisors evaluated, only Vanguard’s Digital Advisor received a “high” overall assessment, a “high” score in portfolio quality, and a “high” score in breadth of services. It’s the second year in a row that Vanguard was the only firm to receive a “high” overall score.
“Vanguard continues to set the standard for low-cost digital financial advice,” the Morningstar analysts concluded.
Colton Fisher, a principal in Vanguard Institutional Investor Group, said that “we’re particularly proud of this recognition because of our commitment to improving participant outcomes and helping a broad range of individuals achieve their financial goals. We’ve invested heavily in advice services that are both comprehensive and easily accessible. Morningstar’s recognition validates that the investments we’ve made are paying dividends for our clients.”
To find out more, read Morningstar's 2023 Robo-Advisor Landscape report.
Notes:
- All investing is subject to risk, including the possible loss of the money you invest.
- Vanguard’s advice services are provided by Vanguard Advisers, Inc. ("VAI"), a registered investment advisor, or by Vanguard National Trust Company ("VNTC"), a federally chartered, limited-purpose trust company.
- The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. Find VAI’s Form CRS and each program’s advisory brochure here for an overview.
- VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation ("VMC"). Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.
Vanguard received the first overall ranking in Morningstar's second annual Robo-Advisor Landscape report for 2023 among 17 other robo-advisors selected by Morningstar. Morningstar evaluated each provider across the following weighted criteria as of December 2022 to determine their rankings: total price (30%); the process used to select investments, construct portfolios, and match portfolios with investors (30%); the parent organization behind the digital platform (20%); and breadth of services (20%). Vanguard also received the same ranking in 2022 in Morningstar’s first annual Robo-Advisor Landscape report, based on December 2021 data. Additional details about Morningstar's methodology are available on its website. Current fees may vary for Digital Advisor and the other robo-advisors considered. Although Vanguard compensates Morningstar for marketing services, Morningstar's opinions and evaluations are independent and unrelated to the selection of Vanguard for this ranking. Following the independent announcement of this ranking, Vanguard purchased a license from Morningstar for the right to include this rating in Vanguard marketing.