How does it work?
Vanguard Digital Advisor combines cutting-edge technology with Vanguard’s deep expertise to invest your money. You’ll get objective, personalized advice and money management—entirely online. Here’s how it works:
And if your situation ever changes, we’ll adjust your plan accordingly. Rest assured that Digital Advisor will keep an eye on your money so you can get closer to your goals while you focus on what matters most to you.
Smart, sophisticated, and always working for you
- How Digital Advisor works
- Why your mix matters
Digital Advisor recommends a personalized mix of investments based on your goals and comfort with risk. Learn how that mix can help you go the distance.
How Digital Advisor works
You may have heard the term "robo-advisor" before. As more and more people are turning to their phones and tablets to handle their finances, it’s a word that’s getting a lot of use. But what are robo-advisors, and what do they do? Here’s an overview that can help you decide whether a robo-advisor might be a good fit for your life and finances.
A robo-advisor is an online platform that manages your investments automatically. It’s financial advice that comes from an algorithm instead of a person, and it can take a lot of the time, guesswork, and stress out of owning a portfolio.
When you sign up for a robo-advisor, it’ll ask for basic information about your goals, risk tolerance, and the length of time you want to stay invested.
Then technology takes over to suggest a portfolio for you—but it doesn’t stop there. A robo-advisor also does the actual investing for you, and it’ll manage those investments over time, rebalancing periodically to make sure your asset mix stays on the right track. All behind the scenes, all automatically. It’s pretty cool when you think about it.
A robo-advisor can be a good option for people who don’t want the stress of keeping up with the markets or managing their own portfolios. You can set it and forget it, or set it and check in as often as you want. You get the peace of mind that comes from knowing your money is working hard for you, without all the time and effort it takes to do everything yourself.
Robo-advisors come with another perk. They often charge less in fees than traditional financial advice services, and you can usually start investing with a lower initial deposit.
There are hundreds of robo-advisors out there, and not all of them are alike. That’s why it’s important to research and compare options to decide what works best for you. Robo-advisors do share one important thing in common, though—they’re built to give you the time and freedom to focus on the things in your life that matter the most. After all, this is your journey.
The legal details
Whenever you invest, there’s a chance you could lose the money.
Vanguard Digital Advisor's services are provided solely by Vanguard Advisers, Inc. (VAI), a registered investment advisor. Go to vanguard.com/legalbrochure for important details about this service. Vanguard Digital Advisor's financial planning tools provide projections and goal forecasts, which are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
© 2023 The Vanguard Group, Inc. All rights reserved.
Why your mix matters
When you enroll in Vanguard Digital Advisor®, our technology works hard to make sure your investments are diversified from day one. Let’s talk about what that means and why it matters. It’s important to spread your money out over many different kinds of investments. This helps give your portfolio the best chance to thrive.
It also gives you a buffer that helps reduce risk. It’s OK if one investment doesn’t grow the way you hoped it would, because there are many others that can make up for it. Digital Advisor spreads your money out automatically by investing in low-cost mutual funds and collective investment trusts. You can be invested in thousands of different securities across four major categories: U.S. stocks, U.S. bonds, international stocks, and international bonds.
This lowers the risk of investing. Not every seed you plant will grow, but some will. And as time passes, you might find yourself standing in a well-tended garden. Digital Advisor does all the work of making sure your investments are diversified, so you won’t have to. That’s something to smile about.
The legal details
Whenever you invest, there’s a chance you could lose the money.
There is no guarantee that any asset allocation or any particular mix of funds will meet your investment objectives or provide you with a given level of income. Diversifying means having different types of investments. It doesn't guarantee you'll make a profit or that you won't lose money.
Bond funds are made up of IOUs, primarily from companies or governments. These funds risk losing value if the debt isn't repaid on time. Also, bond prices can drop when interest rates rise or the issuer's reputation suffers. Non-U.S. stocks or bonds have risks tied to the political and economic stability of their country or region. And if the value of the foreign currency falls, the value of the stocks or bonds would also fall.
Collective trusts are not mutual funds. They're a special type of investment offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objective, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts.
Vanguard Digital Advisor's services are provided solely by Vanguard Advisers, Inc. (VAI), a registered investment advisor. Go to vanguard.com/legalbrochure for important details about this service. Vanguard Digital Advisor's financial planning tools provide projections and goal forecasts, which are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
© 2023 The Vanguard Group, Inc. All rights reserved.