Vanguard Group Inc. is pushing harder outside the U.S. as its non-U.S. assets pass $1 trillion. The firm now manages more than $12 trillion in total assets around the world, and its chief executive, Salim Ramji, said the next phase of growth will come from global markets. He told the Financial Times that there are “incredible opportunities” as more people move cash into investing. At the same time, Vanguard plans to grow its non-U.S. client base from 17 million to nearly 40 million within five years, reflecting a view that many overseas savers still avoid markets.
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In regions like the UK and Europe, household savings remain heavily cash-based. According to Ramji, investing in these markets often feels too costly and difficult for everyday savers. As a result, large pools of capital remain outside long-term investments. Meanwhile, several governments are now encouraging people to invest more, both to improve retirement outcomes and to support domestic growth. Vanguard is one of several firms backing a UK effort aimed at shifting savings out of cash.
Fees and Strategic Simplicity
Vanguard is best known for low-cost funds and simple products designed for long-term investors. Recently, the firm cut fees on its £52 billion LifeStrategy fund range and reduced its exposure to UK assets in favor of global stocks. The company said the changes were made in response to client demand rather than market timing. This move fits Vanguard’s broader effort to simplify investing while keeping costs low.
Chris McIsaac, who leads Vanguard’s non-U.S. business, said assets outside the U.S. have doubled over the past three years. “At this pace, it will take us another five (years) to attract the next $1 trillion,” he said. He also noted that index funds and ETFs remain underused in many international portfolios. Meanwhile, Vanguard’s pricing gap continues to stand out, with Ramji noting that the average Vanguard fee in Europe is about 14 basis points, compared with an industry average closer to 65 basis points.
This cost advantage places pressure on rivals like BlackRock (BLK), which also benefits from scale. However, Vanguard’s ownership model sets it apart, since the firm is owned by its fund investors rather than outside shareholders. As a result, profits are often returned through lower fees.
Using TipRanks’ Comparison Tool, we’ve lined up notable industry rivals to Vanguard Group Inc. in the asset management space. It’s a great tool for gaining an in-depth view of each stock and the broader sector.
