Part 5/10:
Vanguard’s financial performance reveals an intriguing narrative when juxtaposed against its peers, particularly Fidelity and Schwab. As of the first quarter of 2024, Vanguard commands a substantial $9.3 trillion in assets under management, surpassing both Fidelity and Schwab combined. In terms of sheer size, Vanguard maintains a competitive edge; however, it generates comparatively lower revenues, posing significant challenges.
At the core of Vanguard’s financial dilemmas is net new asset growth. Unfortunately, Vanguard recorded the smallest net inflow of new assets among leading firms, with Fidelity attracting three times as many net new assets in the same year. This alarming statistic signals a potential issue with Vanguard’s ability to maintain and grow its market share.