Vanguard Robo-Advisors Review – 2022

vanguard robo advisor review - logo

Personal Advisor Services and Digital Advisor

*Disclosure: Please note that this article contains affiliate links which means that – at zero cost to you – I might earn a commission if you sign up through the affiliate link. (That said, we’re committed to providing honest reviews.)

Vanguard Personal Advisor Services and the Digital Advisor are part of the Vanguard Group, which is the world’s largest mutual fund company, and the second largest provider of exchange-traded funds (ETFs). The Vanguard Group has over $5.1 trillion in assets under management (AUM). The company was founded by John C. Bogle, who developed the first index fund.

The Vanguard Personal Advisor Services is the largest robo-advisor with $112 billion assets under management. Clearly, there’s A LOT of interest in Vanguard robo-investing!

The Vanguard robo-advisor offers 2 investment options:

  1. Vanguard Personal Advisor Services – A robo-advisor that integrates computerized investment management with human financial advisor guidance.
  2. Vanguard Digital Advisor – This new offering is smilar to the traditional robo-advisors and provides investors with low-fee investment management driven by your risk level and goals.

We love Vanguard for holding the rank as the founder of index funds and and low-cost investing leader!

Vanguard Robo-Advisors Review

Name: Vanguard Personal Advisor Services and Digital Advisor

Description: Vanguard now has two robo-advisors: Personal Advisor Services is for wealthier investors and includes financial advisors. Vanguard Digital Advisor: Computerized robo-advisor with $3,000 investment minimum.

  • Fees
  • Investment Choices
  • Ease of Use
  • Tool & Resources


The Vanguard robo-advisors offer digital only and investment management with financial advisors. Best for:

  • Existing Vanguard customers.
  • Investors seeking low fee investment management.


  • Low management fees on both Personal Advisor Services and Digital.
  • Many account types.
  • Part of top-notch Vanguard Investments.



  • Only Vanguard funds.
  • Vanguard Personal Advisor Services requires $50,000 minimum investment.

So, you don’t have to worry about the reputation of the firm if you choose the Vanguard robo-advisor. And, if you want hand-holding, the entire Vanguard Personal Advisor Services is driven by your relationship with a financial advisor. While, the all-digital advisor is comparable to the typcial robo-advisor.

As robo-advisor fever sweeps the investment universe, the large investment houses are diving in. The Vanguard Personal Advisor Services Robo-Advisor is in the club with Schwab, Fidelity, Merrill, TD Ameritrade and countless other big players.

If  you’re looking for big, Vanguard robo-advisor’s  closest competitor in size is Schwab Intelligent Portfolios with Betterment claiming the third largest robo spot.

Vanguard Digital and Personal Advisor Service – Features at a Glance

 Vanguard Digital AdvisorVanguard Personal Advisor Services
OverviewComputerized investment investment advisor.Hybrid human financial planners and digital investment management.
Minimum Investment Amount$3,000$50,000
Fee StructureDigital Advisor-0.15% of AUM0.30% AUM on assets up to $5 million
0.20% AUM on assets between $5-10 million
0.10% AUM on assets between $10-25 million
0.05% AUM on assets over $25 million.
Top FeaturesLow-fee Vanguard ETFs. Retirement planning focus. Considers all investments.
Personal Advisor-Human financial advisor drives the entire process. Together, you and the advisor create a customized investment plan.
Free ServicesExtensive educational resourcesExtensive educational resources
Contact & Investing AdvicePhone M - F 8:00 am to 7:00 pm EST
No financial advisors for Digital clients.
Phone M - F 8:00 am to 7:00 pm EST
Human financial advisor guides the process.
Investment Funds4 Vanguard stock and bond funds
Diversified mix of low fee stock and bond funds
Accounts AvailableIndividual & joint investment accounts. Roth, traditional, SEP, Simple & rollover IRAs. Trusts. Individual & joint investment accounts. Roth, traditional, SEP, Simple & rollover IRAs. Trusts. 

What Differentiates the Vanguard Robo-Advisors From Competitors

Vanguard Personal Advisor Services

Robo-advising With a Human Touch

The Vanguard robo uses basic portfolio allocation methods that are typical of robo-advisors. A computer algorithm creates a portfolio for each client, based your goals and risk tolerance. But here’s where Vangaurd is distinct from many competitors.  Vanguard’s robo-advisor adds direct human financial advisors to the process. Your Vanguard Advisor is at the helm of your portfolio and is the point person in establishing your account and portfolio.

Along the way, and depending on the size of your portfolio, you will have access to a dedicated or group of human financial advisors at all times.

Minimums and Service Levels

The Vanguard Personal Advisor Services requires a $50,000 minimum investment.

If this amount doesn’t work for you, then skip to the sections discussing the Vanguard Digital investment Advisor.

For investors with at least $500,000 under management, you’re appointed an individual advisor. Much as is the case with traditional full-service investment brokers, the advisor assists you with all matters concerning your account. This gives larger investors similar investment management as they would get at traditional higher cost firms, but at a fraction of the cost.

If you have an account balance between $50,000 and $500,000, you won’t have access to a dedicated personal advisor, but you’ll have regular access to Vanguard’s large staff of professional advisors. In general, this is sufficient human financial advisory help for most investors.

Bonus: Low Investment Minimum Robo-Advisors

While accounts valued at less than $500,000 don’t have a dedicated financial advisor, this may not be the disadvantage that it seems. Vanguard is known for excellent customer service, and each advisor is thoroughly trained in Vanguard’s systems and methods of investing in low-cost index funds. As well, any advisor who you contact has full access to your account profile.

Video Chat Capability

The obvious advantage of this method of advisor contact is that you can have a remote, but face-to-face meeting. It also helps if either you or the advisor needs to bring visual aids into the discussion.

Tax-advantaged Investing

Unlike other robo-advisors, Vanguard robo investing provides tax-loss harvesting on a case-by-case basis. However, Vanguard still engages in tax-advantaged investing with your account. In doing so, they allocate assets based on the taxability of that account. For example, interest and dividend bearing investments, with higher tax obligations might be held in tax-advantaged retirement plans. Growth type investments would be held in taxable accounts, where they can take advantage of favorable long-term capital gains tax rates.

Personally, as tax loss harvesting can create tax time nightmares (in taxable brokerage accounts), I believe that it is best performed with human advisor oversight.

Low Fee Advantage

The low management fee of 0.30% can make a real difference over the long-term. Compared to the industry average of traditional full-service investment managers of 1.02%, Vanguard’s robo-advisor fees can improve your performance by nearly $100,000 on an initial investment of $250,000 invested at an average rate of return of 6% over a 20 year period.

Vanguard Digital Advisor Retirement Planning

vanguard digital retirement planner sample

Vanguard Digital Advisor

The Vanguard Digital Advisor is entering the crowded “basic” robo-advisor arena.

LIke many of its robo-advisor competitors the digital advisor creates a well-balanced investment portfolio that reflects your goals, age, and risk level. At present, it’s best differentiating features are:

  • Low 0.15% investment management fee.
  • Retirement planning feature which shows how to reach your goals.
  • Use of low-fee Vanguard ETFs (exchange traded funds).
  • Access to the well-estblished Vanguard brand.
  • New features coming soon: emergency fund and debt management assistance.

Who Benefits from the Vanguard Robo-Advisors?

Vanguard Personal Advisor Services

Naturally, the whole concept of robo-advisors is tailor-made for investors who prefer hands off management. But one major area where the Vanguard robo-advisor, specifically the Vanguard  Personal Advisor Services stands out is the fact that the service includes a human advisor. Many robo-advisors lack human advisors in order to keep investment management fees low.

That can be especially comforting during those times when the financial markets are not cooperating with your long-term plans. In other words, when maket’s crash, it’s helpful to have someone to talk you off a ledge. Sometimes just having a coach letting you know to stay the course is just what you need during those difficult times.

The other major group who can benefit from this service are larger investors. The basic fee structure of 0.30% is competitive, but it gets even better as your portfolio gets bigger. With the tiered pricing structure, a person with at least $10 million will pay a fee of just 0.10%. That means that the entire portfolio can be managed for just $10,000. That fee level can’t be beat by traditional financial advisors, in most cases.

If you’re seeking a Vanguard alternative with a zero investment minimum, Betterment provides human financial advisors to all account holders (visit theBetterment website now).

Vanguard Digital Advisor

These investors will benefit from the Vanguard Digital Advisor:

  • Existing Vanguard clients seeking low-fee, well-researched investment management.
  • Investors with debt seeking integration and debt payoff strategies.
  • Investors interested in building an emergency fund.

Wealthfront is a Vanguard Digital Advisor alternative with broader services including cash management, lending, and a comprehensive digital financial advisor (visit the Wealthfront website now).

Vanguard Personal Advisor Services – Asset Allocation Example

personal advisor asset allocation image

Vanguard Personal Advisor Services Drill Down

Investment Mix

Unlike other robo-advisors, Vanguard does not limit your investment choices strictly to ETF’s. Instead, they are comprised primarily of index funds, but may also include actively managed funds. The core holdings include Vanguard’s low-cost Admiral Shares, including:

  • Total Stock Market Index Fund (VTSMX)
  • Total International Stock Index Fund (VTIAX)
  • Total Bond Market Index Fund (VBTLX)
  • Total International Bond Index Fund (VTABX)
  • Intermediate-Term Investment Grade Fund (VFIDX)
  • Short-term Investment Grade Fund (VFSUX)
  • Intermediate-Term Tax-Exempt Fund (VWIUX) (for taxable accounts only)

Vanguard Personal Advisors Rebalancing

Vanguard Personal Advisor Services performs rebalancing on a quarterly basis. Your investments will be rebalanced when your portfolio deviates from the target allocation by more than 5% in any position. This is less frequent rebalancing than many other robo-advisors provide.

Vanguard Personal Advisor Service Sign-up Process

The Vanguard personal advisor services has a simple online sign-up process that you can complete in about 10 to 15 minutes.

It flows something like this:

  • Step 1: General information. This includes providing your name, address and contact information. They also ask if you are retired, or if you plan to retire.
  • Step 2: Your spouse’s information, if you’re married.
  • Step 3: Investment strategy. This is where they ask you questions that are designed to determine your risk tolerance (more detail below).
  • Step 4: Income and tax status. This is where you indicate both your sources of income, the amount of income, including pensions and other sources. This is also where you provide your tax filing status.
  • Step 5: Accounts and savings. Here Vanguard is looking to determine potential assets under management.

In regard to Step 3, risk tolerance questions include:

  • ”Generally, I prefer investments with little or no fluctuation in value…?” To which you can indicate strongly disagree, disagree, somewhat agree, agree, or strongly disagree.
  • ”How stable are your current and future income sources?” To which you can indicate the degree between very unstable and very stable.
  • ”What other concerns do you have about market risks?” This is an essay type question, where you are free to record any concerns that you have.

Naturally, these questions are geared toward determining how comfortable you are with taking losses on your investment portfolio. Your portfolio will be constructed with these considerations in mind.

Choose a robo-advisor in under one minute: ROBO-ADVISOR SELECTION WIZARD

Once you have completed the initial questionnaire, you will have a telephone conference call with a Vanguard Advisor. After that, the service will take several days to set up another conference call – which can be done either by telephone or by video. The second conference call is where they provide your customized investment plan.

Vanguard Robo-advisors Performance

You know the drill, “Past performance is no indication of future performance.”

Because every Personal Advisors portolio is individually crafted, in line with your age, goals, and risk level, it’s not possible to give an overall account of the Vanguard Personal Advisor Services Performance.

Vanguard Personal Advisor Services Performance

Although your account will perform in relation to the percent of each fund owned, there is some available data to help you understand the Vanguard Personal Advisor Services Performance.

From October 1, 2018 through September 30, 2020 the 60% stock – 40% fixed income Vanguard Personal Advisor portfolio had an annualized 2 year return of approximately 8%. This is approximately in the mid-range of the most popular robo-advisors.

That said, your investment returns will vary based upon which asset classes are in favor as well as which asset classes you chose for the specific robo-advisor.

If growth stocks are outperforming, like they have been recently, than a portfolio with a greater percent investing in growth stocks will outperform another with a larger percent investing in value stocks.

And that is why we are less concerned with investment performance as a method of evaluating robo investing platforms.

Vanguard Digital Advisors Performance

While the Digital Advisors is brand new, and thus currently has a short track record. For the third quarter of 2020, the 60% stock and 40% bond portfolio return was roughly 4.75%. This one is the easiest to calculate given that the fund only owns 4, easy to research, ETFs.

The performance for the digital advisor will always be available by multiplying the percent invested in each fund, by the period return.

One way to understand how your portfolio might perform, consider the returns of the underlying funds. For example, if your entire portfolio was invested in two funds: the Vanguard 500 Index Fund and the Vanguard Total Bond Market Index Fund in a 50% – 50% mix, then your returns would correspond to the returns of the investment funds. So, if the stock fund gained 10% in one year and the bond fund returned 3%, then your annual return would be a bit less than 6.5%, to account for the management fee.

Vanguard Digital Investments – Low Fee ETFs

List of Vanguard Digital Advisor ETFs

Vanguard Digital Advisor Drill Down

The Vanguard Digital Advisor is similar to it’s robo-advisor peers.

The basic process and features of the Digital Advisor include:

  • Initial questionaire drives the investment process. You’re asked questions about your goals and risk tolerance levels.
  • Your questionnaire responses direct the robo-advisor computer algorithm to create an investment portfolio ranging from conservative to aggressive. Although you’re able to change your asset allocation.
  • The investments within your portfolio are diversified, low-fee Vanguard ETFs including US and International Stock ETFs and US and International Bond ETFs. This digital robo-advisor offers fewer funds than many competitors. If you’re seeking a digital advisor with more investment funds, consider Wealthfront.
  • New features coming to help manage debt, emergency fund, and integrate your entire finances.
  • $3,000 minimum investment amount and 0.15% management fee (plus low underlying fees for Vanguard ETF management).
  • Many taxable and retirement acounts available

The Vanguard Digital Advisor is a standard robo-advisor with a reasonable fee. Although if you’re seeking a robo-advisor with zero management fees you might consider M1 Finance, or SoFi Invest. (Disclosure, I have an account with M1 Finance)

Vanguard Personal Advisor Services and Vanguard Digital Advisor Pros and Cons

Both the Vanguard Personal Advisors and the Digital Advisors are part of the low-fee and well-respected Vanguard family. This gives each robo-advisor immediate credibility as demonstrated by the wide adoption of the Vanguard robos.


  • The Vanguard Advisory Services management fee of 0.30% is well below the 1.00 – 1.50% charged by traditional investment managers.
  • The Vanguard Digital fee of 0.15% is reasonable when compared with the digital investment robo-advisors.
  • The Personal Advisor Services account is managed by live advisors, using robo-advisor tools.
  • For very large advisory investors, the sliding fee scale is generous.
  • Your account is invested primarily in Vanguard funds, which are some of the best funds available (Vanguard’s average expense ratio is 0.12%, compared with the industry average of 0.62% for mutual funds and even lower for the digital ETF investments).
  • The Vanguard Advisor clients have a financial professional to speak with which is helpful, especially during market downturns and can save you from selling or buying into the market at the wrong times.


  • The Vanguard Digital robo-advisor fees are not the lowest.
  • The Vanguard Digital Advisor lacks a wide range of services that are currently available at competitors like loans, cash managment, and the extensive digital-line financial advisor available at Wealthfront.
  • Your account is invested primarily in Vanguard funds, which may or may not be a problem.
  • The initial investment minimum is higher than most competitors in both the Advisor and Digital offers and excludes smaller investors. Wealthfront has a $500 minimum, while Betterment has no minimum.
  • Vanguard’s robo-advisor doesn’t offer an automatic tax-harvesting feature – it is on a case-by-case basis.


Are Vanguard advisors any good?

Like any other financial advisor, it depends first upon your personal needs and whether the individual advisor matches up with your specific goals. If you invest in the Vanguard Personal Advisor services, you won’t have your own advisor until your assets reach $500,000. From $50,000 to $499,999 you’ll have access to a group of advisors.

Can you meet with a Vanguard Advisor?

For basic questions regarding any Vanguard product, you’ll talk with a “service specialist” not a financial advisor. You’ll need at least $50,000 to have access to a financial advisor for your Vanguard managed account.

Vanguard Robo-Advisor Review Wrap Up

Vanguard is among the most trusted names in mutual funds, and they have brought their expertise to robo-advising through Vanguard Personal Advisor Services and Vanguard Digital. The Vanguard advisor offers professional management at a reasonable fee, although it is more advantageous for larger investors who can take advantage of the lower Vanguard management fees.

Vanguard Personal Advisor Services has a lot going for it in an increasingly competitive industry with financial advisors and low fees as stand out features.

Vanguard is well-positioned with their new Digital robo-advisor service to meet the needs of an even larger number of investors than they already have.

We like the Vanguard Personal Advisor Services for wealthier investors, but the Vanguard Digital Advisor doesn’t bring any outstanding features to the table at present.

Although, if you’re interested in a robo-advisor with human financial advisors, a unique free investment management dashboard,  tax-loss harvesting and the opportunity to invest in individual stocks as well, check out Personal Capital (Even if you don’t hire this investment manager, their free financial management tools are outstanding.).

Ultimately, your robo-advisor choice depends on your own personal financial situation as well as your goals and preferences. To help make your robo-advisor choice easier, please enjoy our complimentary robo-advisor comparison chart. (sign up below)

Click here to visit the Vanguard Personal Advisor robo site.

Click here to visit the Vanguard Digital Advisor site.

Compare to Other Robo-advisors:

Personal CapitalBettermentSchwab Intelligent Portfolios
OverviewPersonal Capital offers free investment management tools for all. The Advisors service integrates your financial accounts and provides provides comprehensive financial management and human advisors.A goals based automated investment advisor. Offers a variety of human financial planning options and high yield cash account.Schwab Intelligent Portfolios builds your investment portfolio, monitors it and regularly rebalances. Schwab Intelligent Portfolios Premium offers financial advisors and more services.
Fees and Investment MinimumsZero fees for access to free investment management tracking & recommendations. Paid investment management charges graduated fees. For assets between $1,000,0000-$3,000,000 .89% of AUM. Fee drops to 0.49% for accounts over $10,000,000.Digital-Zero minimum. 0.25% AUM up to $2 million. 0.15% for accounts over $2 million. Premium-0.40% AUM up to $2 million-Includes unlimited access to CFP. 0.30% for accounts over $2 million. A la carte financial planning sessions from $199 to $299.Schwab Intelligent Portfolios – Zero account management fees – $5,000 minimum.
Schwab Intelligent Portfolios Premium – $25,000 minimum – One time $300 set up fee and a $30 per month subscription fee, regardless of account value.
Best for:Free investment tracking and planning great for investors with at least $50,000.
Personal Capital Advisors good for investors with at least $100,000 seeking comprehensive financial planning services
All levels of investors.
Small investors seeking zero minimum.
Investors seeking financial advisor. All investors get access to varying levels of financial advisors.
Investors seeking cash management.
Cost consious investors.
Investors seeking free digital investment management and subscription pricing for large accounts.
Investors seeking branch access.
Visit:Personal Capital website.Betterment website.Schwab website.

Comparison Articles:

Updated: June 1, 2020

*Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t believe is valuable.

5 thoughts on “Vanguard Robo-Advisors Review – 2022”

  1. Hi, your blog is just amazing. Thank you for sharing such a great kind of review as well as information about the personal advisor services. Personal financial advisors provide advice to help individuals manage their finance and plan for their financial future. Thanks again for sharing such a fantastic blog with us. Keep posting.

  2. this review is incorrect. Both personal advisor services and digital advice use the same 4 funds to invest clients money. A digital engine monitors and changes asset allocation in both. The advisor is there to answer questions and help with planning. He/she has no role in changing the investment allocation.

    1. Dear Jay, The Personal Advisor services platform is flexible with investment options and asset allocation. There are greater investment choices than with the digital advisor. “We’ll generally recommend low-cost Vanguard ETFs® and mutual funds to build your portfolio, but you can discuss your investment preferences with an advisor to see what fits.” ~the Vanguard website
      Jay D, have you invested with the Personal Advisor Services? Thanks for writing in.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top