DISCLOSURES

Vanguard Advisor Alpha Strategy Modules:

 

Figure 1. Vanguard quantifies the value-add of best practices in wealth management

 

Vanguard Advisor's Alpha Strategy Modules

Suitable Asset allocation using broadly diversified funds/ETFs

Cost-effective implementation (expense ratios)

Rebalancing

Behavioral coaching

Asset location

Spending strategy (withdrawal order)

Total-return versus income investing

Potential Value Added

Module Number

I

II

III

IV

V

VI

VII

Value-add relative to "average" client

experience (in basis points of return)

> 0 bps

45 bps

35 bps

150 bps

0 to 75 bps

0 to 70 bps

> 0 bps

"About 3%"

Notes: Return value-add for Modules I and VI was deemed significant but too unique for each investor to quantify. See page 9 for detailed descriptions of each module. Also, for "Potential value added," we did not sum the values because there can be interactions between the strategies. Bps = basis points.

Source: Vanguard

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