Vanguard Digital Advisor. A personalized way to help you grow and reach your retirement goal - automatically.
Asset Class Return•30d
In Robo Advisor•30d
Vanguard's robo-advisor makes staying on track to your retirement goal simple. It's an automated investing service that's tailored to your personal goal. Digital Advisor is powered by Vanguard's proven investment methodology and strong track record of high performing funds. Digital Advisor requires $3,000 to enroll and charges about 0.15% of your Digital Advisor balance annually.
Things to Know
You make money on
Value + Dividends
Term of investment
7% - 10%
Digital Advisor costs just $4.50 a year per $3,000 invested
Helps predict the likelihood of meeting your retirement goals
30 million investors trust Vanguard to help them reach their goals
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
Stock price appreciation + dividends. For reference: according to historical records, the average annual return from the S&P Index since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%. Adjusted for inflation, the historical average annual return is around 7%. However, it's important to note that each Robo has their own investment strategy that can influence returns.
How Vanguard Digital Advisor makes money
Vanguard charges a .20% annual management fee to investors.
Is it safe?
Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.
How You’re Taxed
As with any stock realized stock gains, investors are subject to capital gains tax. If gains are realized within one year, you are taxed at your income tax rate. If gains are realized after one year, you are subject to a long-term capital gains tax of 0% to 20%. A common service that some robo-advisors offer through their systems is automatic tax-loss harvesting. Tax-loss harvesting is a deliberate strategy whereby any loss from the sale of a security in a taxable account is used to offset a capital gain or taxable income, thereby reducing the tax paid.
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