Vanguard has announced that it will be launching a service that provides financial advice at affordable prices for consumers all over the U.S. in 2015. The company is known for providing funds at consumer-friendly prices. It ranked first in gathering consumer assets across the globe for the third year in a row in 2014, and many companies that provide similar financial services have definitely been taking note of this fact.
Vanguard’s operations outside of the U.S. expanded significantly in 2014. The company first listed exchange traded funds in Europe in 2012, and it grew faster than all but one company in the market in 2014. Vanguard saw over a 100% increase in international assets from 2013 to 2014, and it has focused mainly on Australia and the U.K.
Industry analysts have stated that the company will likely target defined contribution pensions in the U.K. This makes sense as it is already the leader in similar pension plans in the States. They also believe that Vanguard will invest in Australia’s pension market in addition to paying close attention to developments in China.
In addition, the company may begin to sell to investors in Europe directly in the same way that American consumers purchase financial products. As of 2014, individuals in Europe were only able to buy ETFs through third parties. This change would be costly and will likely only occur if Vanguard sees the potential to make a considerable profit in doing so.