Vanguard is a different kind of investment company. It was founded in the United States in 1975 on a simple but revolutionary idea: that an investment company should manage its funds solely in the interests of its clients.
This is a philosophy that has helped millions of people around the world to achieve their goals with low-cost, uncomplicated investments.
It's what we stand for: value to investors.
*Data as of 31 July 2023. Monetary figures are in US dollars.
**The Vanguard Group, Inc. is owned by Vanguard's US-domiciled funds and ETFs. Those funds in turn are owned by their investors.
*** Crew headcount updated annually as of 31 December 2022.
It’s easy and often tempting to focus on short-term market movements, the economy, manager ratings or the performance of individual funds. This may lead you to overlook the basic principles that we believe will give you the best chance of success.
These principles are based on a simple idea: Focus on what you can control.
The first step in creating a financial plan is to set measurable and attainable goals. This helps investors stay focused and avoid unnecessary risks.
In the market, as in life, there will always be unexpected twists and turns. That’s why plans can change over time. But planning early can help investors develop a more goal-oriented asset allocation, avoid mistakes and enjoy the feeling of not leaving their future up to chance.
Develop a suitable asset allocation using broadly diversified funds
A successful investment strategy is based on a diversified portfolio aligned with its objective. By diversifying their investments across markets, regions and sectors, investors can avoid unnecessary risks and limit volatility.
The higher the return potential of an investment, the greater its risk and potential volatility. That’s why the asset allocation should be based on realistic return expectations and a thorough understanding of one’s own risk tolerance.
You can’t control the markets, but you can control how much you pay to invest. Investors should always be aware of their costs, since every franc that you pay in fees comes at the expense of your potential return.
In fact, our research suggests that lower-cost investments have tended to outperform higher-cost alternatives. So, when it comes to investing money, a higher price does not always indicate better quality.
Stay focused and think long-term
Investing evokes emotions that can disrupt the plans of even the most sophisticated investors – often at the expense of returns. When investors sell assets out of fear or follow a market trend, they often end up trailing the market. And every time they reconfigure their portfolio, they may incur costs or be subject to taxation.
You can counter emotions with discipline and a long-term perspective. This can help you stick to your plan.