Vanguard vs. Northwestern Mutual: what’s the difference?
Discover the key differences between Northwestern Mutual and Vanguard, two financial service providers offering a range of trusted financial advisory and brokerage services.
Summary
Northwestern Mutual and Vanguard offer a range of financial advisory and brokerage services.
Each firm has unique investment strategies, but both prioritize long-term investments.
Vanguard is known for its low-cost services and fees. Northwestern Mutual offers comprehensive customer service and personalized financial planning.
Unbiased can connect you with a financial advisor best suited to meet your financial needs.
Northwestern Mutual vs. Vanguard: what are the differences?
Northwestern Mutual is a US-based financial service mutual organization.
The firm provides financial services and products, including investment advice, wealth and asset protection, retirement planning, private client service planning, life insurance, investments, annuities, and business finance planning.
Vanguard is one of the US’s largest providers of ETFs and mutual funds. Vanguard financial services offers clients financial planning, asset management, trust services, and brokerage services.
What fees can I expect from Vanguard & Northwestern Mutual?
When working with investment firms, you can expect to pay a range of fees, including advisory fees, trading fees, trading commissions, and other non-trading fees.
Northwestern Mutual fees are based on management, load, and expense ratios. Its management fees are usually calculated as a percentage of a client’s assets under management (AUM).
Vanguard fees are based primarily on expense ratios, which are calculated based on the type of investment advice provided and the types of funds selected. Vanguard’s average mutual fund expense ratio is 0.10% to 0.15%, notably lower than the industry average.
Vanguard fees
Vanguard fees are charged as follows:
Digital advisor charges an annual advisory fee of 0.20% on AUM for all-index investment options and 0.25% for active index combinations. Vanguard Personal Advisory charges annual gross advisory fees of 0.35% on AUM for all index options and 0.40% for active index mixes.
The Vanguard Personal Advisor Select and Vanguard Personal Advisor Wealth Management services charge fees based on tiered schedules, with a maximum of 0.30% as an average advisory fee on all assets advised.
Account closure fees are set at $100, annual account services fees are $25, and broker-assisted commissions are charged at $25 per closing transaction.
Northwestern Mutual fees
Northwestern Mutual charges a range of fees but does not have a fixed Northwestern Mutual financial advisor or management fee for its self-directed client accounts.
The firm’s account maintenance fees are $50 per annum plus 0.0079% of assets under management, and the transfer out/termination fee is $125 once-off.
The firm’s no-load mutual fund transaction fee is set at $75.
Is Vanguard or Northwestern Mutual better?
Vanguard and Northwestern Mutual offer similar offerings, but each has its own pros and cons regarding investment advisory and brokerage services.
Pros of Vanguard
Low-cost financial advisory services and low fees compared to industry averages.
High interest rates are offered on uninvested funds.
High quality of order execution.
Options, stocks, and ETF trades are offered free of commission.
Cons of Vanguard
No fractional shares are offered.
Basic trading platform with limited functionality.
Available data and research is limited.
Pros of Northwestern Mutual
Mutual structure views policyholders as owners and issues dividends.
Extensive range of financial services and products.
Renowned resilience due to robust investment and business strategies.
Personalized financial planning services.
Cons of Northwestern Mutual
Limited investment options.
The quality of financial advisory services may vary according to the skills of Northwestern Mutual careers financial advisors.
Fees are higher than those of Vanguard.
Vanguard or Northwestern Mutual: which should I choose?
Depending on your unique needs and circumstances, one of these financial service providers may be better equipped to meet your goals.
With fees, investment strategies, and pros and cons explored above, here are other relevant questions about Northwestern Mutual vs Vanguard to help you make an informed decision.
How do Vanguard and Northwestern Mutual remain competitive and adapt to changing market conditions?
Vanguard financial advisors remain competitive by offering low-cost expense ratios on index funds and ETFs. The firm also provides a simple, user-friendly online platform that allows clients of all technological skill levels to access it easily.
Northwestern Mutual regularly upgrades its technology to provide seamless online services and account access. The firm maintains its competitiveness by offering comprehensive online self-service tools for payments and account management, advanced financial planning tools, strict data security practices, and accessible online communication platforms.
Which platform provides better customer service and support?
Vanguard customer service is available between 8 a.m. and 8 p.m. Monday through Friday and relies on real support agents. Its phone-based system is highly regarded as effective and useful for all types of client needs.
Northwestern Mutual's customer service is renowned for its personal and efficient approach. For ease of access, customer support is available via phone, email, and live secure chat.
Can I access my Vanguard or Northwestern Mutual accounts through their websites and mobile apps?
Vanguard financial services offers a website and a mobile app for clients who want to access their accounts remotely. Both platforms enable clients to log in, track portfolio overviews and account balances, and seek support when needed.
Northwestern Mutual provides a more comprehensive online portal for access to accounts, policies, and other key information. Its mobile app has a range of functions, allowing users to view investment and policy details, update beneficiaries, pay premiums, and track net worth.
What are Vanguard & Northwestern Mutual’s specific investment strategies?
Vanguard investment strategies
Vanguard's strategy in 2024 focuses heavily on bonds and the belief that high interest rates will persist in the market. A Vanguard financial advisor emphasizes bonds due to their high yields and approaches equities with caution due to high interest rates impacts on corporate valuations.
Vanguard’s financial advisors also recommend active management for fixed-income portfolios and a focus on long-term financial goals through portfolio diversification.
Northwestern Mutual investment strategies
Northwestern Mutual's investment strategy also focuses on portfolio diversification through investments in a range of asset classes to mitigate risk and enhance potential returns.
The firm maintains a long-term investment perspective and promotes goal-based financial planning that aligns with clients’ specific objectives.
Find the right financial advisor
Vanguard and Northwestern Mutual are both trusted providers of financial advisory and brokerage services.
Through Unbiased, you can find a professional SEC-regulated financial advisor and get expert financial advice tailored to your financial situation.
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