Vanguard Digital Advisor is a cost-effective option for investors with lower capital and a preference for passive investment strategies and digital-only interaction. Personal Capital Wealth Management is better suited for high-net-worth individuals who desire personalized advice from financial advisors and a broader suite of financial planning services.
| Attribute | Personal Capital Wealth Management | Vanguard Digital Advisor |
|---|---|---|
| Minimum Investment Requirement | $100,000 (briefly lowered to $25,000 in 2015) | $100 for retail brokerage accounts; $5 for eligible 401(k) plan participant accounts. |
| Annual Advisory Fee | Ranges from 0.49% to 0.89% of assets under management (Up to $1 million: 0.89%, $1 million to $3 million: 0.79%, $3 million to $5 million: 0.69%, $5 million to $10 million: 0.59%, Over $10 million: 0.49%) | Approximately 0.15% of assets managed for a typical investment portfolio. The gross advisory fee is 0.20%, but clients receive a credit for revenues that Vanguard receives from the securities in the portfolio. For ESG or active/index options, the fee ranges from 0.11% to 0.20%. The advisory fee is waived for the first 90 days for new clients. |
| Investment Strategy | Hybrid approach combining robo-advisory algorithms with human financial advisors, uses ETFs and stocks to minimize expense ratios | Primarily passive, using Vanguard ETFs. Offers three portfolio options: All-Index, Active/Index, and ESG. |
| Tax Optimization Strategies | Tax-loss harvesting and asset location strategies | Includes automatic tax-loss harvesting and asset location. Tax-efficient rebalancing and the use of tax-efficient funds, including municipal bond funds, are also employed. |
| Financial Planning Services | Retirement planning, college savings, and estate planning. Offers tools like a retirement planner and a fee analyzer. | Offers personalized retirement planning. Tools available include a retirement calculator, debt payoff strategy, healthcare cost estimator, and budget tools. |
| Access to Financial Advisors | Access to a team of financial advisors who provide personalized guidance. Clients investing at least $200,000 have 24/7 access to two advisors via phone, live chat, email, and web conference. | No direct access to human financial advisors is offered through the Digital Advisor platform. Access to advisors is available through Vanguard Personal Advisor, which has a higher minimum and separate fees. |
| Account Management Tools and Technology | Free financial dashboard to track net worth, analyze investments, plan for retirement, and manage cash flow | Online dashboard and financial planning tools are available. Clients can link external accounts to view finances in one place. |
| Portfolio Customization Options | Investment strategy can be tailored based on goals, risk tolerance, and preferences | Clients complete an online financial profile to create a personalized retirement plan. Three portfolio options are available: All-Index, Active/Index, and ESG. |
| Socially Responsible Investing (SRI) Options | Yes, Personal Capital offers SRI options. | Yes, Vanguard Digital Advisor offers an ESG portfolio option. |
| Automatic Rebalancing Frequency | Algorithms continuously monitor and rebalance portfolios | Portfolios are evaluated daily and rebalanced when any asset class deviates more than 5% from its target allocation. Rebalancing also occurs if the cash balance exceeds $300. |
| Availability of Banking Services | Offers a suite of banking services through partner BNY Mellon | No cash management or checking account features are available. However, Vanguard's Cash Plus Account offers a competitive APY and enhanced FDIC coverage. |
| Mobile App Functionality | Award-winning mobile apps for iOS and Android. Allows you to view portfolio holdings and allocation, and work with the Retirement Planner. | Yes, you can sign up for and manage your account through Vanguard's mobile app. |