Vanguard Charitable adds five new investments to its lineup
Oct 27, 2022
Just in time for giving season, Vanguard Charitable has expanded its investment offer, adding five new investments to meaningfully expand our donors’ charitable asset allocation options. The new options offer donors greater investment customization, especially within US equity markets.
As the provider of the nation’s highest-value donor-advised fund (DAF), we’re always looking to amplify our donors’ ability to make a difference. Donor input and charitable investing best practices led us to fortify our existing offer, expanding upon what has historically been a successful investment lineup.
These new index investment options are immediately available to donors.
- Donors can recommend placing charitable funds in the investment options when making their next contribution into their account.
- Donors can also recommend an investment exchange (see steps below) to transfer existing DAF funds into the new investments.
As always, when choosing among charitable investments, donors should be guided by their giving goals. The investment options a philanthropic account is currently invested in may still, in many cases, be the right ones for that donor.
New investment options
To find a full analysis of each new investment option, see our investment page.
|Investment Name||Expense Ratio||Goal|
Seeks to track the performance of the Standard & Poor's 500 Index, which measures the investment return of large-cap stocks.
Seeks to track the performance of the S&P Completion Index, providing broad exposure to U.S. small- and mid-cap stocks.
|Large-Cap Value||0.04%||Seeks to track the performance of CRSP US Large Cap Value Index, providing exposure to a broad range of U.S. value-oriented stocks as determined by a variety of value factors.|
Seeks to track the performance of CRSP US Large Cap Growth Index, providing exposure to a broad range of U.S. growth-oriented stocks as determined by a variety of growth factors.
|Short-Term Inflation Protected Securities|
Seeks to offer protection against inflation with reduced price volatility through exposure to shorter-duration inflation-protected treasury bonds.
Lower expense ratios for two existing investment options
The expense ratios of two existing investment options have also been reduced as part of our partnership with Vanguard. Through this partnership, our donors receive at-cost access to exclusive share classes and lower expense ratios.
- The Money Market investment now features Vanguard’s Cash Reserves Federal Money Market Fund as its underlying fund. The new underlying fund carries with it a lower expense ratio at 0.10%—down one basis point from the previous expense ratio of 0.11%—while still offering the same general approach and investment goals.
- The Emerging Markets investment now features an expense ratio of 0.08%, down from its previous expense ratio of 0.10%. Because Vanguard Charitable now qualifies for a lower expense ratio, we are immediately passing the savings on to our donors.
How donors can recommend an investment exchange
You can recommend an investment exchange by logging into your secure online account. From there, you’ll hover over the Investments tab and then select “Recommend An Exchange.” Follow the instructions and you can recommend changes to your account’s investments.
The deadline to process exchanges on a given business day is 2 p.m., Eastern time.