Go figure.

The fundsters at Vanguard have this way of disrupting the industry, sometimes to the delight, sometimes to the chagrin, of other fundsters. Sometimes both.

Seems like they are at it again, this time via a pilot online retail advisor service dubbed Personal Advisor Services, according to InvestmentNews.

According to InvestmentNews, the "model-based service provides investors a financial plan, asset allocation scheme, ongoing monitoring and re-balancing, performance forecasting and periodic contact with an adviser for 0.3% of portfolio assets annually. The service “typically recommends” Vanguard funds as investments to clients, according to a company brochure."

This niche already has some notable players, according to the paper: Wealthfront, which charges 25 basis points on assets over $10,000, and Betterment charges between 15 and 35 basis points.

A notable point from the InvestmentNews is that financial advisors, as of yet, are not screaming bloody murder about the service. Firstly, the service is low touch compared to that offered by most advisors.

In fact, some advisors like that this service exists because they can direct low-asset investors, whom they wouldn't be able to serve anyway, to the service-- and generate some good will for the future.

Of course, experts of the digital kind and otherwise are watching the program to see how online financial relationships are evolving.  

Edited by: Tommy Fernandez


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