Vanguard Trims Its Manager Roster

Vanguard pared back its portfolio manager teams today, removing managers from 44 stock index mutual funds and ETFs and seven active factor funds. Among those impacted are 500 Index (VFIAX), Total Stock Market Index (VTSAX), Dividend Appreciation Index (VDADX) and Real Estate Index (VGSLX).

It’s routine for Vanguard to shuffle the managers on its stock index funds. What's unusual is the timing. Just four months ago, in February, Vanguard added co-managers across many of these same funds—moves we highlighted in Vanguard’s ETF Crown, Foreign Stocks’ Lead, and Managerial Moves.

So why the reversal? I don’t think these are two separate shifts. Rather, the February additions and today’s removals likely reflect a single planned transition, carried out in two steps. Overlapping the old and new portfolio managers should ensure a smooth handoff.

Below, I’ve listed all the funds impacted by both rounds of changes—showing their original managers, the February additions and the June departures.

Vanguard’s stock indexers have taken a “management by committee” approach. After all, these managers aren’t picking stocks—their job is to track the indexes as closely as possible while keeping taxes as low as possible. Multiple managers create redundancy and resilience, helping safeguard operations while mentoring the next generation of managers.

The bottom line is that this is business as usual for Vanguard’s stock index fund team.