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Vanguard Research Finds Financial Advice Improves Portfolio Diversification For 9 in 10 Investors

Vanguard Research Finds Financial Advice Improves Portfolio Diversification For 9 in 10 Investors
PR NewswireFebruary 11, 2020, 8:50 AM CST
VALLEY FORGE, Pa., Feb. 11, 2020 /PRNewswire/ -- In a new Vanguard white paper, The value of advice: Improving portfolio diversification, researchers Cynthia Pagliaro and Steve Utkus demonstrate the material impact of financial advice on the construction of individual investors' portfolios. Analyzing the asset allocations of more than 44,000 Vanguard self-directed investors who adopted Vanguard Personal Advisor Services, the researchers found the implementation of advice improved portfolio construction for nearly 90% of the investors by addressing equity risk-taking, increasing international exposures, and reducing cash holdings.


  • edited February 11
    Now that Vanguard is selling advice, this is like saying Coca Cola finds soda is good for you. The analysis ignores pre- and post-advice returns and ignores post-advisory-fee returns. Moreover, it criticizes self-directed investors for having a “home bias” in a period when it has absolutely been advantageous to invest in U.S. stocks versus foreign ones.
  • We get invites frequently from Vanguard Personal Advisor Services. Perhaps down the road we consider their services.
  • Hi @LewisBraham

    Uh, yes. I took a chance on the read and expected something of value.
    The primary take away is that the "customer" portfolio was more diversified after using advisor services; but not more profitable.

    Oh, well.
  • I haven't made my way though all the free advice yet. Vanguard will have to wait.
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