For decades, Vanguard’s hundreds of mutual funds and ETFs have been managed under one roof: The Vanguard Group. That’s no longer the case.
On Wednesday, Vanguard quietly unveiled a major shift, splitting the firm into two wholly owned units—Vanguard Capital Management and Vanguard Portfolio Management.
I say “quietly” because the announcement was tucked away on Vanguard’s corporate site—not its press room. Why the low profile? You could argue that Vanguard wanted to avoid rattling shareholders. Or, perhaps, they didn’t want to face tough questions just yet.
Cutting the Cake
Each new unit will have its own investment management and stewardship teams. Here’s the basic breakdown: