They offered mutual fund only accounts when they had separate mutual fund and brokerage accounts. Now that they have combined accounts, it seems like a gigantic stretch to call having to hold the mutual funds in a brokerage account as being thrown under the bus.Vanguard induced people to open mutual fund only account to get their money, and is now throwing them under the bus?False. I worked in the industry and MANY of my colleagues who don't work at Vanguard have Vanguard accounts.I would guess that Vanguard has done an analysis and decided that this demographic is not important to them. I can imagine two reasons, I am sure there are more.2) Up to 11% of employer of VTI public companies may not have ability to use Vanguard brokerage platform.
1.) Most will be creative and work out a solution and Vanguard is not really concerned/interested in making life for their competitors easier.
2.) There aren't actually that many because working in the financial industry makes you less likely to have a Vanguard account.
We working at active managers and high priced brokers know what goes on inside the kitchen and wont pay top $ for those bad meals.
I had a truly ZERO ER set of fund (CIT) choices in my 401k and still transferred out when I retired, to pay a slightly higher ER elsewhere, to get my money out of the hands of active managers with mediocre performance records. We had no index funds, and I never saw the active equity funds as worthwhile. Bonds sometimes but equity never. My taxable $ never spent one minute in my employer’s funds nor managed by their advisors. I and many others used the Vanguard legacy fund-only platform while employed at these active fund managers. This gave us both freedom to make “trades” without permission, and privacy not having to report holdings and trades to our employer, in addition to all the other reasons people use Vanguard funds.
And note Vanguard's own employees are likely mostly subject to these rules, so this is not some meaningless edge case to them.
First line CSR knew of the issue and without argument let me open a new fund-only legacy platform account (via snail mail) just before I retired a couple years back. No need to research the issue or get approval from a supervisor, they knew and cared about the issue with barely any discussion.
Statistics: Posted by Northern Flicker — Wed Jun 12, 2024 12:17 am