Vanguard, American Express Launch Advice Service for Cardholders

By Ginger Szala

News April 12, 2022 at 01:52 PM

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The $8 trillion asset management firm Vanguard and American Express announced Tuesday that they were launching a Vanguard financial advice service for Amex U.S. consumer credit card holders.

The new service, INVEST for Amex by Vanguard, will provide access to Vanguard's financial advisors and include digital financial planning and investment management.

The service is limited to Amex members with a consumer card issued by the American Express National Bank who reside permanently in the United States, U.S. Virgin Islands and those who have military or diplomatic mailing addresses.

Enrollment requires an eligible Vanguard brokerage account with at least $10,000, according to the companies. The service has an annual gross advisory fee of 0.50%. Amex will receive up to half this fee as a "promoter fee," according to a disclosure on its website. Advisory fees are waived for the first 90 days for first-time enrollees.

INVEST clients will be able to schedule one 30-minute planning phone consultation during the first year of enrollment. Those with $100,000 in advised assets will have unlimited access to advisors.

The service will use algorithms to create customized investment strategies and provide ongoing management of portfolios constructed with Vanguard ETFs.

Clients with at least $50,000 in taxable assets managed by the service will earn American Express Membership Reward points.

Clients with a high-yield savings account can receive a cash bonus in their savings account based on the average daily balance over the 12 months prior to their INVEST anniversary. This means $15 for every $10,000 in their savings account, up to $75 annually.

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