Above-the-fold article on this morning's WSJ website. Also mentioned are concerns over new fees nickle-and-diming customers and how growth of AUM not leading to customer service/interface improvements.
(gift link)
https://www.wsj.com/personal-finance/vanguards-die-hard-customers-have-a-message-for-new-ceo-the-service-is-abysmal-c2da0491?st=79tslq2qz4mj6bi&reflink=desktopwebshare_permalinkVanguard ranked last out of eight major brokerages for customer satisfaction with website performance and mobile apps in a recent survey of 2,700 investors conducted by Investor’s Business Daily, which is published by The Wall Street Journal’s parent company, Dow Jones. The asset manager has acknowledged the problems, which some analysts chalk up to an underinvestment in technology.
Former CEO Tim Buckley, who announced his retirement in February, said in 2019 that the firm would spend $1 billion a year to improve its technology. Vanguard rolled out a modernized app in 2021, but customers weren’t impressed and complained of bugs and dumbed-down functionality.
“The complaints go back years and years,” said Daniel Sotiroff, a research analyst who covers Vanguard at Morningstar. “Part of the issue is their size and how fast they’ve grown. It’s hard to turn the Titanic.”
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For investors having web or tech issues, the lack of night or weekend service is a particular point of frustration. Vanguard’s customer-service line is open Monday through Friday from 8 a.m. to 8 p.m. Eastern time. Rivals Fidelity and Charles Schwab both offer 24/7 customer service by phone.
“They’ve always tried to keep costs low and service has suffered as a result,” said Jeff DeMaso, editor of the Independent Vanguard Adviser, a newsletter. “Long wait times are an issue.”
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There’s a theory, and I’m not the only one to come up with it, that they’d rather move people onto the personal advisory service where they make more money or they’re just as happy if they go to another brokerage,” said Allan Roth, founder of Wealth Logic, a financial-planning firm.
Comments
Customer complaints on a % basis , I don't see it presented.
I'm not a fan of VG, but I do have an account there.
Last question. When RMD account runs out of money, are you charged $100 ?
I called them up a short while ago about opening up a new taxable account. I didn't want to open an account online, but couldn't find a form on their website. The rep told me they don't post the forms because they're trying to save me money. I explained that I'd rather do everything via USPS. I had to be sent a form via a super-secret email thing or whatever. I don't care if they shave another .0001 points off the expense ratio at this point -- I'll pay that extra .0001 in ER to get decent service.
2) firm had strong reputation; 3) firm was mutually owned vs. publicly traded.
I was never fond of Vanguard's investor website even after it was redesigned.
I seldom contacted Vanguard for assistance but did experience several suboptimal interactions.
Dan Wiener (The Independent Adviser for Vanguard Investors) chronicled Vanguard's customer service
issues for years. Regardless of the new CEO, I'm not confident these long-standing issues will be
ameliorated in the near-future. Updated commission and fee schedules (effective July 1) suggest
Vanguard is prioritizing "nickel-and-diming" investors rather than improving customer service.
Consequently, my two Vanguard accounts were recently transferred to other brokerages.
"Maybe their new motto will be 'Please buy our finds, but not from us.'"
Exactly. Vanguard is a fine mutual fund company but a lousy brokerage.
This tread is named, 'Customer Service Mega Thread' and begins March 29, 2024. Scroll down the page to the blue colored area, second paragraph. This write says a lot.
I have no desire to read the thread, but some here may have an interest.
My last Vanguard connection was a 401k plan. The rollover of that plan to a Fidelity IRA was absolutely smooth. A three way phone call and presto, finished in about 20 minutes. I suspect that wouldn't happen today.