7 ms·
Someone correct my math here, but if they have 10 trillion in assets under management and the management fee is 0.07% then that's still 7,000,000,000 or 7 billi
by syspec 2y ago
Someone correct my math here, but if they have 10 trillion in assets under management and the management fee is 0.07% then that's still 7,000,000,000 or 7 billion in fees every year?
Not bad
- giantg2 2y agoInteresting. That would put their budget higher than the bottom 10% of state budgets.
- loeg 2y agoRevenue, not income.
- coldpie 2y agoIndeed, that is about the stated revenue on their Wikipedia page. Divided equally among their 20,000 employees, that comes to $350,000 per employee. Expenses like office space, taxes, fines/fees, inflated executive compensation, etc will bring that down quite a bit; though other sources of income will bring it back up too. Sounds reasonable.
- echoangle 2y agoI wonder what 20,000 Employees are doing there though. I know saying "I could do that with 10 people, what are they even doing" is a meme here, but I really can't make a good guess what the employees are actually doing. Risk assessment, looking for new investment opportunities, regulatory paperwork, marketing? 20,000 is a lot of people.
- coldpie 2y agoOne way to get a hint at what kind of work employees do is by looking at open job postings: https://www.vanguardjobs.com/job-search-results https://www.vanguardjobs.com/job-search-results
- echoangle 2y agoNice link, thank you!
- lolc 2y agoI imagine they have actual customer service. But maybe I'm naive?
- echoangle 2y agoIn what situation would you contact them? Aren’t basically all possible problems you could have something you would contact your broker for?
- zerocrates 2y agoVanguard is also a broker.
- stearns 2y agoRight, you are hinting at the angle that other commenters have pointed at, which is that Vanguard runs a fund management business (which is what the article is about) but also runs a brokerage, does 401k/403b/529 administration, has an advisory business, etc. The total employee count refers to employees working across all those business units, and that includes a lot of customer service, regulatory, back office, etc.
- thehappypm 2y agoHow many people is ideal to look after $10,000,000,000,000 in assets? Some bloat is definitely necessary at these mind-boggling numbers, and assets-per-employee is still half a billion.
- samus 2y agoIndeed, that's the reason why they can afford to reduce the fees. Index managers are not charities after all.