Vanguard Advisor's Alpha®

August 8, 2018


The compensation structure for advisors is evolving, and relationship-oriented services are more important than ever. Some clients’ greatest obstacle to long-term financial success is themselves, and advisors acting as a wealth manager and behavioral coach can help them to avoid making decisions that hinder their chances of long-term success.

This Vanguard Research Insight piece explains why, when adding value is the goal, advisors may be better served by changing their performance benchmark from the market’s return to the returns that investors might achieve on their own, without professional guidance.

Use this paper to:

  • Understand how a well-thought-out strategy can serve as an important emotional anchor for clients during periods of panic or greed in the markets.
  • Examine the value you can provide to portfolios by coaching clients to avoid performance-chasing behavior.
  • See how tax efficiency can help minimize portfolio costs.
Additional materials


  • All investments are subject to risk, including possible loss of principal.

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