Acceleration into Financial Professional Program: My first two months
Starting a new job is tough. Starting a new job as a college graduate is even tougher. Moving from one coast to the other with nothing more than what you can fit into your car to start a new job right out of college is REALLY tough. I moved 2,700 miles from San Diego to Philadelphia to participate in Vanguard’s Acceleration into Financial Professional program and couldn’t be more proud of my decision. My journey to Vanguard began as a community college transfer student at San Diego State University. I was passionate, excited, and inquisitive, but wasn’t sure how those characteristics would translate into a job. Rather than getting caught up in making every step a calculated one, I focused on doing what I knew I should. I attended the first career fair on campus and spoke to various firms. Vanguard’s booth was the one I was most excited to find. My conversation with the recruiters in attendance must have went well because the next morning, I was scheduled to interview for Vanguard’s College to Corporate internship in Scottsdale, Arizona. Fast forward almost a year and I had just concluded a challenging, fun, insightful internship with Vanguard. During my ten week internship I fell in love with the financial services industry and Vanguard’s unique values so much so that I knew it was a company I wanted to begin a long career with. Fortunately, I was offered a position in the Acceleration into Financial Professional Program. After two months as a program participant, I’d like to share what I appreciate about it and provide some additional insight into the program focusing on three themes: community, flexibility, and impact.
Community
Moving here wasn’t easy and it’s taken me a few months to truly feel settled. I’ve had to adjust to a new environment and develop a new routine. I’ve even had to come to terms with the following critically important facts; in Philadelphia, there are people that choose to eat pizza without cheese (Tomato Pie), subs are actually called “hoagies,” and saying anything bad about the Eagles is very much frowned upon. Adjusting to a new place is tough but working for a company that promotes and encourages a strong sense of community has made the transition much easier.
For example, Vanguard hosted a day in the city for our group on the Friday of our first week. That day we toured Reading Terminal Market (where I ate way too many samples), we did an escape room challenge and finished with lunch at Mission Taqueria. It was a great time for us to get to know each other and have fun outside of the confines of our cubicles. I had a blast.
Flexibility
The program has structure. You will complete four six-month rotations within various departments in Finance. You will participate in soft-skill and technical-skill trainings. You will have responsibilities and deliverables during your rotations. But beyond these, you will be heavily encouraged to drive your own unique experience. If you want to attend a Vanguard event discussing innovation and emerging trends in FinTech, you can. If you want to join a book club to build your investment acumen, you can. The leadership team acknowledges the value in developmental opportunities outside of your day-to-day responsibilities. I’ve fallen in love with this aspect of the program, as it fulfills my intellectual curiosity —and also opens doors to explore future opportunities.
Impact
For my first rotation, I was placed on the Financial Planning & Analysis team that supports the Institutional Investor Group. Our team provides business clients and senior management with strategic decision support, operational and capital planning, financial reporting, and performance measurement. In support of these functions, I’ve been able to explore fundamental analysis, process automation, forecasting techniques, and fund cash flow analysis.
From day one, the skillsets, knowledge, and drive I came to the program with have been valued by my colleagues and managers. I’ve been given projects that enable me to both showcase my strengths and also stretch my conceptual understanding of the business segments we support. Recently, the results from one of my projects helped improve a section of the insight we provide to our Finance and Institutional Investor Group leadership!
Joining a team I knew little about has been difficult. I still have a lot to learn. But knowing that the work I bring to the table is valued has made this rotation a rewarding experience. I’m new to the program and still relatively new to Vanguard and the Philadelphia area. However, after two months I am even more excited than when I began. I come to work every day with the confidence that I’ll be challenged, the peace of mind that I’ll be supported, and the excitement that I’ll have the opportunity to make meaningful contributions.
-Terrell V.
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The journey continues
With the free time to observe other departments combined with seeing how my team leader has helped me on my journey, I’ve figured out that I want to pursue either a financial advisor or leadership role. I’ve enjoyed seeing the way our leaders develop crew members through coaching and mentoring, and watching how our advisors add value to our clients’ lives by helping them accomplish their goals. It is my hope to continue to build even deeper and more meaningful relationships with my colleagues and our clients, as well as to further develop my skills in my career. Whether it be in leadership or as an advisor, I will continue to be a steward of Vanguard’s mission to take a stand for all investors, to treat them fairly, and to give them the best chance for investment success, all while fostering this same passion with the crew and clients I work with.
With Vanguard’s flexibility and support, I have full faith that I’ll be able to succeed and in a timely manner. As my journey continues, I’m excited to know I have Vanguard’s support and would encourage others to be unafraid of using all of the wonderful resources available to you. I know that I will be able to attain the career I want at Vanguard.
-Rod M.
More careers blogs you may have missed
Preparing For a Vanguard Interview – Be a STAR
Do you have an interview coming up soon? Read this blog to prepare for the STAR format questions and nail your interview!
Three Experiences That Paved My Path to Vanguard
In this blog, Team Leader Rachel shares three experiences along her path to Vanguard and why she loves being a leader.
Why I Got Rid Of My Five Year Plan
Vanguard crew member Lauren reflects on why she tossed out her five year plan and instead focused on building a career within a company and industry she grew to love.
Exploring Careers in Client Services – Retail Services
Crew member David shares his perspective on career choices, teamwork, and how he contributes to Vanguard’s mission in Retail Services.
Inclusion – It’s More Than a Policy
Hear from crew about their thoughts on LGBTQ+ inclusion at Vanguard, and learn about the Human Rights Campaign’s (HRC) Corporate Equality Index—and how we stacked up.
Solving problems and innovating through data science
I graduated from Stevens Institute of Technology in 2002 with a Computer Engineering degree. The Institute was very close to Wall Street, and upon graduation, many of my classmates received offers from top Wall Street firms and investment banks. I too fell into the allure of working on Wall Street. I received a few offers from some of the top firms in New York—and I also received one from Vanguard, who was making it a priority to recruit from my school at the time. However, this was when the dot-com bubble burst and most of the Wall Street firms rescinded their offers for all of my classmates including me. Vanguard was the only firm that honored their commitment and did not rescind their offer. I am thankful to this day. At Vanguard, I have the opportunity to do what I always dreamt of doing and much, much more at a firm where doing right by clients and crew is the guiding principle. I joined Vanguard as a software engineer and never looked back. At the time, all I wanted to do was to apply what I had learned in school to real life problems, but didn’t have much thought about where I applied them. As time went on, I realized how fortunate I was to be at Vanguard, whose main mission was to help people all over the world reach their financial dreams. Knowing you’re doing well for others is incredibly rewarding. I got the best of both worlds: I could apply my passion in technology and apply it at a company whose mission is to lift people up. I also got to work on our trading systems, sales systems, mobility (iOS) systems, customer relationship management systems and so on, all while learning about and applying analytics to everything we did.
From a career perspective, Vanguard invested in my professional development. Today, I’m a Senior Manager focused on artificial intelligence and data science. About four years ago, with the advent of big data technology and infrastructure, I started to focus on advanced analytics and data science exclusively. I saw an opportunity to use data science and artificial intelligence to provide better, more personalized, and smarter services to our investors.
Vanguard now wants to do for financial advice what we did for Exchange Traded Funds and mutual funds: make top notch, holistic advice accessible to anyone who needs it at an incredibly low price. That’s where my team comes in. I now help lead our advanced analytics and artificial intelligence team for Vanguard’s advice program. My team is comprised of data engineers, data scientists and artificial intelligence engineers in collaboration with investment experts and economists. And they come from diverse educational backgrounds—some have computer science or engineering backgrounds, while others studied physics or statistics.
In order to create highly personalized advice experiences, we seek to incorporate behavioral economics to better personalize the advice needed. To that end we are utilizing artificial intelligence and other data science techniques on a variety of financial advice projects. Our goal is to create experiences and services that will help more people than ever before reach their financial goals. My team is directly empowering Vanguard’s mission and I personally feel inspired every day to come to work. Being able to learn about cutting edge technology in artificial intelligence and data science and use it to help as many people as possible is extremely rewarding.
Investing is complex, and sometimes, it’s a challenge for people to know how to make wise investment and financial decisions. Vanguard is committed to giving investors all over the world a fair shake, and is investing in services—such as advice—to do so. I am passionate about trail blazing artificial intelligence and machine learning at Vanguard, which is enabling us to fulfill our mission and help millions of people all over the world reach financial independence.
Now, who will join us on this noble mission?
-Amir A.
If you’re seeking an environment where you can make a difference and develop professionally, check out our Data & Analytics and Information Technology & Security career opportunities.
Everyday innovation from client-facing crew at Vanguard
If you were to ask most people to think of an innovative company, they would probably picture a tech start-up in Silicon Valley. That’s certainly what I used to imagine. But when I joined Vanguard, I learned that it doesn’t get much more innovative than our founder, Jack Bogle, creating the index mutual fund, resulting in the disruption of the financial services industry. A disruption that has continued over the last forty years. Vanguard has continued to invest heavily in innovation through investments in technology, a relentless search for process improvement methodologies, and the opening of the Innovation Studio in Philadelphia. But I would say the biggest commitment Vanguard has made towards innovation has been through its crew. One of the things I love most about working at Vanguard is that it recognizes the skills and abilities of its employees and empowers them to help promote meaningful change within their departments. Vanguard offers its crew multiple channels to brainstorm, share ideas, and innovate. For example, it sponsors hackathon events, which give crew a setting in which to present creative well-planned ideas to some of our most influential leaders. Vanguard has even created innovation teams to pilot new ideas and technology throughout various levels and departments.
Innovation Team
I am privileged to have the opportunity to lead one of those innovation teams. I lead a team of engaged client-facing sales crew who also specialize in driving change and innovation within their organization. Members of my team utilize their client interactions and work to create new processes to help improve the experience for clients and crew.
When a member of my team comes up with an idea or proposal, we work together to determine if it is something we can implement immediately, or if there is an opportunity to pilot the idea to see if the process or technology would benefit everyone at a broader level.
Crew that are a part of the innovation team have the opportunity to learn and develop unique skills that aren’t always as prevalent in other roles. These include conceptual thinking, project management, and presentation skills.
Culture of Innovation
I believe the key to fostering a culture of innovation relies heavily on mindset. The concept of innovation can seem ambiguous, scary, and out of reach. As a leader, I turn innovation into something that is a part of my team’s everyday norms and expectations.
Here are three main ways my crew are afforded the ability to be more innovative:
- Crew on the innovation team are provided an hour of “innovation time” each week to focus on brainstorming and developing their ideas.
- Crew are encouraged to utilize our newly established “Ideation Room”, a space constructed to maximize creative thinking and collaboration.
- Our leadership team sponsors quarterly “Pitch Day” competitions that empower our crew to team up and present their ideas. The winning team gets to see their idea come to life as it is piloted and potentially implemented across the organization.
While each member of my team takes advantage of the opportunities listed above, it is important to note that this mindset of being a positive change advocate isn’t unusual for Vanguard crew. I would argue it is an instinct most crew have. Then again, why wouldn’t it be? We work at a company founded on innovation.
-Jeff M.
If you enjoyed this post, check out more from our #LifeatVanguard Blog. And if you’re ready for a more rewarding, engaging, meaningful career, search our opportunities at www.vanguardjobs.com.
My dad sparked my investment passion; Vanguard fueled it
My father was a payroll clerk by trade, but his true passion was investing. When I was growing up in the 1980s, every weeknight at 6 o’clock my dad watched The Nightly Business Report on PBS on our only TV. Needless to say, this was before the internet and CNBC (I know, I’m dating myself), so it was really the only way you could find out what happened in the markets before you read it in the newspapers the next day. I vividly recall how my dad used to hoot and holler whenever good news boosted one of the stocks he owned, even though he regularly invested through up and down markets, reinvested the dividends, and held his stocks for decades. His passion sparked my interest in pursuing an investment career, which began at another investment firm performing research and oversight of institutional money managers. While I was aware of Vanguard and even owned some Vanguard mutual funds, at the time I had the impression that Vanguard was “just” an index shop, and not a “real” investment firm. Boy, was I wrong. My introduction to Vanguard About nine years ago, I began to pursue an opening in Vanguard’s Oversight and Manager Search team. The more research I did on Vanguard, the more I realized that it was truly a world-class investment firm – active and passive, equity and fixed income. The crew I met with were smart yet humble, and the investment research was insightful and balanced. I joined Vanguard in 2009 as a Senior Investment Analyst in the Portfolio Review Department, on the team that provides oversight of Vanguard’s investment managers and funds. I was able to learn about a lot of different investment approaches from not only Vanguard internal managers, but from the roughly 30 other world-class investment firms Vanguard partners with like Wellington, PRIMECAP, and Ballie Gifford.
Vanguard around the globe
One day in 2013, I was on my way to the Galley (the on-campus cafeteria) when my department head pulled me into his office and said, “We’re thinking of sending you to Hong Kong.” My reply was, “I was thinking of getting a sandwich.”
Ten months after that conversation, my wife, three kids, and I moved to Hong Kong where I was tasked with building Vanguard’s investment product function for Asia—designing and launching Exchange Traded Funds (ETFs) and mutual funds, and educating clients about them. It’s where I learned about the ETF ecosystem and retirement systems for Asian countries.
Asia Product and Investment Team 2017
After three years in Asia, I returned to our headquarters in 2017 to lead Vanguard’s Defined Contribution Advisory Services (DCAS) team. Ever wonder how a company decides which funds to offer its employees in their 401(k) plan? And how they oversee those funds? Well, our team of investment professionals delivers investment perspectives, evaluations, and custom portfolios to help those companies and their consultants do just that.
DCAS- ugly sweaters and curling!
A common thread
My three roles at Vanguard are very different and none of them are in the Investment Management division, but the one common thread was each requires a strong degree of investment acumen for success. Fortunately, Vanguard provides a ton of resources and support for crew to develop and deepen their investment acumen, from paid support for the Chartered Financial Analyst (CFA®) and Certified Financial Planner™ (CFP®) programs, free mobile access to the Wall Street Journal and other industry news sources, numerous internal investment training sessions, and more. As long as you bring a “growth mindset” and an intellectual curiosity, there’s no limit to your development.
I’ve seen Vanguard’s investment research, analysis, and portfolio management become more sophisticated and global over the years. But our investment philosophy has remained steadfast since our founding more than 40 years ago: set an investment goal, diversify your portfolio, keep your costs low, and stick to a plan —strikingly similar to my dad’s approach.
-James M.
If you’re seeking an environment where you can make a difference and develop professionally, check out our career our opportunities at www.vanguardjobs.com.
National Intern Day: how Vanguard’s internships help you test the waters
National Intern Day spotlights the impacts of hard-working, smart interns at companies around the country. Our College to Corporate (C2C) interns from our three US sites share how they spend their days and what they get from their time at Vanguard:
Stephanie M.:
This week I had the privilege of volunteering alongside my Vanguard intern cadre at the Share Food Program of Philadelphia. Together we packaged almost 700 boxes that will be delivered to seniors in need living in the area. Afterward we headed to the Sports Complex for a fun afternoon touring Citizens Bank Park. Just another reminder of how lucky I am to be spending my summer with a company that places such high value on their crew and their company.
Erin M.:
Being a #VanguardIntern has meant getting to know other college students who come from different universities, experiences, areas of interest and career aspirations. This diversity of thought brings about great #teamwork capabilities and also a ton of fun, in and out of the office!
This past week I had the amazing opportunity to volunteer at Feed My Starving Children. This experience was amazing! As Vanguard C2C Interns, we worked alongside volunteers to make 55,080 meals for starving children around the world! Working at Vanguard has shown me what a team of like-minded people can do to help others!
Leah B.:
I had a great time strengthening our teamwork skills at Vanguard’s Corporate Challenge Day! I love the work that Vanguard does to ensure a healthy culture for its crew.
Vanguard gave me the opportunity to attend a buy-side client intern day hosted by Bank of America Merrill Lynch. I was able to hear from the heads of several divisions, such as US ETF Distribution and Equity Sales, as well as network with peers across the industry. Thanks to this event, I better understand how the two sides of the business are interconnected. Loving the experience that being a #VanguardIntern in the Quantitative Equity Group is giving me!
If you’re seeking an environment where you can make a difference and develop professionally, learn more about our internship opportunities at www.vanguardjobs.com.
Celebrating one year of #LifeatVanguard stories
To celebrate the one year anniversary of our careers blog, we share this collection of 5 popular blogs since we began publishing. Join us for this look back at lessons learned, eye-opening advice, surprising career moments and powerful journeys. New to the blog? Welcome! The careers blog gives you a glimpse into what it’s like to work at Vanguard. Our crew members share their experiences on topics that are important to them: our mission & purpose, career journeys, a day in the life, and more.
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1. A lifetime of opportunities to lead, grow, and impact others
It was 1999. I was just finishing up my college degree, and was stuck at a crossroad, trying to decide where I wanted my career to go. I knew I wanted to be involved in a company with a rich culture, strong leaders, sound values, and growth opportunities galore – easy enough, right? When I came up dry with opportunities, my mentor recommended I look into Vanguard.
2. A conversation with a Vanguard Sales Executive
We recently sat down with Anthony W., a Sales Executive in Vanguard’s Financial Advisor Services. Anthony’s role is unique in that he spends his time “in the field” with advisors, and does not work in a Vanguard office. Anthony shares his thoughts on why he loves sales, how he makes a difference, and how football prepared him for his role at Vanguard.
3. So what is Vanguard’s campus like
Rounding out our seventh week in the internship, a quick step back allowed us to realize how Vanguard’s campus is unique. With a list of amenities that make Malvern, PA feel like home, each of our blog members selected his or her favorite location on campus. Read on to find out more.
4. Achieving success at Vanguard, regardless of obstacles
From as far back as I can remember, I was warned about growing up and facing the “real world.” As if it were a scary mythical place one could never be fully prepared for. The two things I did know about this so-called “real world” was I needed to earn an income and create a life for myself. Now, let me tell you my Vanguard story.
5. Why I started a book club with my daughter
Has the universe ever given you a sign? An unmistakable, it’s-time-to-act type of signal? Well, as I was sitting at Vanguard’s Leadership Symposium in Philadelphia last fall, a topic hit my radar for the third time in the span of a few months. And since good things come in threes (right?), I committed then and there to take action – and my kids and I are glad I did. Yup, in this Vanguard blog, I’m talking about my kids. Let me explain…
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.
What differentiates us from other data science teams?
“Data scientist” has become a top career choice, but with all the buzz surrounding this term, lots of questions arise such as: Who are they? What do they do? Well, here’s your opportunity to hear my perspective as a Data Science Manager at Vanguard! To me, a Data Scientist is anyone who can solve business problems by: You may have already done those tasks, but what differentiates a modern Data Scientist from a more traditional one? Increasingly, we seek candidates who can manage large volumes of unstructured data and navigate sophisticated mathematical structures while taking advantage of powerful technology.
Here are some common questions we’ve received from candidates:
1. What’s it like to work at Vanguard? Vanguard is an investment management company and our core purpose is “To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success”. Vanguard’s unique ownership structure — the company is owned by its funds — means there are no conflicts of interest. So we always ask: “Are we doing the right thing for our investors?” whenever we make any decision, whether it’s about a product launch, sales, or marketing. Working at Vanguard is great because crew alignment to the mission naturally leads not only to success for our clients, but also to a great work culture.
2. What kind of problems do you usually solve? I work in the Center for Analytics and Insights at Vanguard. We help our internal business partners serve their clients better by providing analytics-driven insights to support the client life journey. This includes winning new clients, onboarding them, and deepening engagement in the relationship to retirement and beyond. My data science team uses mathematical, statistical, and machine learning approaches to answer business questions related to financial professionals, institutional investors, retirement plan participants, and investment products.
3. Will I have an opportunity to grow my career? I’ve been at Vanguard for 10 years, and I can confidently say that I have grown professionally as well as personally during my tenure. I didn’t start my career as a Data Scientist, yet many growth opportunities were given to me to be prepared for my current role. Vanguard provides various opportunities to grow professionally, with a range of Data Science roles at different levels, support for ongoing learning, and opportunities to rotate to different teams. Vanguard can help you reach your goals. You should continuously push your own limit — individuals who have growth mind-sets will thrive at Vanguard.
So, what differentiates us from others? The entire company works toward one simple and clear goal of doing what’s best for our clients. We solve some of the company’s most complex and challenging problems using a mix of math, stats, and computer science skills. We bring diverse and innovative ideas and share them in a fun and collaborative environment. What else could you ask for as a talented Data Scientist?
-Mirim L.
If you’re seeking an environment where you can make a difference and develop professionally, check out our Data & Analytics career our opportunities at www.vanguardjobs.com.
A different kind of investment
For context, I’m a software developer. We learn and utilize programming languages to create applications. With technology forever changing, it can be extremely hard to keep up – there’s a new Javascript framework just about every week. For Javascript users, that’s great, but it also means that there’s so much to learn and so little time to do it. Luckily, Vanguard helps me accelerate my learning through a variety of methods: Trying new things Some days, I get to act as a mad scientist – piecing together a Frankenstein-like application with new technologies and programming languages. What I’m creating may not always go into production, but the time and freedom to spend a few paid hours to get my feet wet on something new is a beautiful thing. It helps me learn and is just one of the ways Vanguard has invested in me! Virtual training Virtual training usually comes by way of a website. Most of these trainings aren’t free, and Vanguard acquires subscriptions for crew so we have the resources to keep learning. These trainings are helpful because more often than not in technology trying to learn a new programming language or Application Programming Interface (API) can be quite cryptic when text documents are all you have to go by. Personally having a video example has always helped me go the extra mile while learning. I gained the majority of my Angular, JavaScript, HTML and CSS knowledge through this avenue. Ironically, I learned web development on the web! I’ve gained a few soft skills this way too. E-learnings on things like persuasion and influence or project management serve me well when I combine them with in-person trainings. The data is always there to review when I feel I’m getting a bit rusty. 
At Vanguard, we do our best to live up to our mission of “taking a stand for all investors”. Between our carefully chosen products, services, and hard-working crew, our clients have the best chance for success with their investments! But during my time here, I’ve seen Vanguard support a different type of investing – investing in their crew. At Vanguard, you can be part of an environment that inspires continual learning–and not just with encouraging words. There is action behind those words!
For more physical interactions, Vanguard also brings in vendors who spend a few days with groups to teach a desired skill. The invitation for these trainings are spread far and wide. It’s similar to having a college professor and study group. The great thing about this is you’re given time during the week or throughout the day to participate in these trainings. You don’t have to stay an extra 40 hours to get your day-to-day duties complete, which helps maintain work/life balance.
Conferences
Another major opportunity I received with Vanguard is the chance to go to conferences. Our peers and leaders make sure our work is covered so we as employees have the opportunity to learn and grow during a fun experience.
Vanguard understands that educating and giving opportunities to employees helps us create the best products for our clients. Learning new skills also keeps crew engaged, which makes us want to do more for clients. I knew coming out of college that information technology was a glorious yet dangerous field to be in. This field is forever changing. So what is now desired in IT may not be in the next 2 years. Lucky for me, the resources and time that are required and desired for me to flourish in IT are easily accessible at Vanguard.
-Elijah A.
If you’re seeking an environment where you can make a difference and develop professionally, check out our opportunities at www.vanguardjobs.com.
A lifetime of opportunities to lead, grow, and impact others
It was 1999. I was just finishing up my college degree, and was stuck at a crossroad, trying to decide where I wanted my career to go. I knew I wanted to be involved in a company with a rich culture, strong leaders, sound values, and growth opportunities galore – easy enough, right? When I came up dry with opportunities, my mentor recommended I look into Vanguard.
Finding a core purpose at Vanguard
My first few years at Vanguard were spent solving investment puzzles for shareholders who had encountered account-related issues. Working as a Resolution Associate in the Service Recovery organization gave me the opportunity to support clients with account-related issues. I could see the purpose in my work, as well as the positive impact I made on each client. And, I learned to embody Vanguard’s core purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. It was fascinating to research each issue and get to the root of the problem. Even more thrilling was the opportunity to offer solutions for our clients.
While I loved working in Service Recovery, I decided to explore new horizons, and research different career options at Vanguard. One path I hadn’t expected to find myself in was leadership. When one of my leader’s noticed my passion for continuous improvement and knack for supporting professional development among my peers, they suggested I pursue a role in people leadership. What a great opportunity this was – Vanguard was investing in me, so that I in turn could invest in others. If you are exploring a role at Vanguard, read on to learn what differentiates our people, and why I chose to spend nearly two decades as a Vanguard leader.
First, leadership at Vanguard isn’t something you do for a title or recognition. Rather, leadership is about serving the needs of investors and enriching the development of your team. While exploring career opportunities, delve deep into the values of the organization; their mission and purpose should align with your beliefs. At Vanguard, our core values are centered on ‘doing the right thing’ in every decision we make. It’s the primary reason why I am both a long-term investor and a long-time crew member. Truly successful leaders nurture and develop a growth mindset to create value and continually improve the organization and their teams. In my experience, these leadership elements enable you to leave a lasting legacy for the benefit of others.
A return to my roots
After spending 15 years working in a variety of leadership roles in our Retail, Financial Advisor Services, and Office of the General Counsel divisions, I have now returned to my roots as the leader of the Service Recovery organization in which I began my career. In my foundational years at Vanguard I learned how to embrace Vanguard’s core purpose. In my latter years, I learned how to lead and serve others within a global community that continually invests in the long-term value we bring to both shareholders and crew. These are the core reasons why I have dedicated my career to Vanguard. My hope is that you too find a role that enables you to grow and to leave a positive mark on the lives of those who come across your path.
-Célestine H.
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.
Day in the Life of a Vanguard Trader
Have you ever wondered what it’s like to do the actual investing at one of the world’s largest investment firms? To find out, we spoke with two principals in Vanguard Equity Investment Group. Mike Buek is head of U.S. trading and Gerry O’Reilly leads a team of index portfolio managers. They gave us an inside look at a day in the life of a Vanguard trader. Our conversation has been edited for length and clarity.
What is the role of a trader at Vanguard?
Mike Buek: Our trading desk acts as a combination portfolio manager and trader for Vanguard’s index funds. So we understand the entire investment process. We seek to minimize tracking error to the benchmark while at the same time minimizing the fund’s transaction costs.
We want an index fund to be 100% invested to its benchmark. We monitor any changes to each fund’s benchmark and match them in our trading.
Gerry O’Reilly: At the same time, our traders manage the trade-off between tracking error and impact. We employ proprietary trading strategies to try to minimize the impact our trading has on the overall market.
So if we have a large inflow to a fund on a given day, we have to decide whether we have market impact and still track the benchmark or if we can minimize impact by trading this inflow over multiple days. It’s important to look at each trade relative to the market so we can understand what the market can absorb.
Every trader on the desk employs strategies we’ve developed over the years. For example, we’re fans of using limit orders as a way to minimize impact.
How do you prepare before the market opens in the morning?
Mike Buek: We typically come in around 7, 7:30. We check what the international desks in London and Melbourne have done so far. Then we go right to reconciling each fund to make sure we’re 100% invested. For example, we may have expected to receive $50 million on a given fund the previous day, so that’s what we invested. But then the next morning, it turns out the fund received $55 million. We need to get that $5 million invested as soon as possible. In this case, we’d invest in futures to get the fund fully invested because the market isn’t open yet.
Gerry O’Reilly: Each trader also has to sign off on each of their funds in the morning, saying they agree with each fund’s status. Someone from investment risk also signs off, as well as the desk supervisor. So there are three different sets of eyes looking at the funds each day, making sure the starting line makes sense.
Each fund, based on its size, has a certain tolerance. For example, Total Stock Market Index is an enormous fund. If it starts the day with $10 million in cash, that isn’t a huge deal proportionally. It’s not even a basis point. But $10 million cash in one of our smaller funds could be a huge deal. Our investment risk group monitors those tolerances.
Knowing that you have someone keeping an eye on the performance of the fund and the benchmark is a big source of comfort. As much as we’d like to try to eliminate any potential tracking error, it’s probably unrealistic to think it will always be that way. We closely monitor what little tracking error there is.
Mike Buek: We also look at the performance from yesterday. We’ll look at every fund’s performance versus its index. If there’s anything off, we want to know why. If there’s a reason we knew about and it makes sense that we outperformed by 3/10 of a basis point—and that’s how deep it gets, explaining fractions of a basis point—we investigate so we can adjust and get the fund tracking as close to perfect as we can.
Mike Buek, Principal, Vanguard Equity Investment Group, U.S. Trading
How does the experience change throughout the day?
Gerry O’Reilly: Our data group gets notified of the index changes coming at that day’s close. Once you know an index change is coming, a fund tracking that index has to adjust.
On a given day, you could have 10 to 20 different corporate actions going on, such as a company issuing more shares. Each trader gets assigned a corporate action and takes point on that stock. They will figure out what each fund needs to do to ensure the index weights are correct.
Trading can get really busy when indexes add or remove names. Say, for example, XYZ Company has outgrown a small-cap index and is being added to a mid-cap index. We’d need to mirror that move in the funds tracking those indexes.
How does Vanguard manage the global nature of the market? What specific difficulties come up?
Mike Buek: When we go global, we’re passing trades to Vanguard’s European and Australian-Asian desks to execute. And they pass us trades to execute for their funds. The communication has to be good between the three desks so the traders executing each trade understand the objective.
That’s challenging because of the different hours, but with improved technology and our expanded team, we’re able to make sure our portfolio management is globally consistent.
Gerry O’Reilly: International trading can often involve more markets. In the U.S., we mainly deal with the NYSE and Nasdaq. In other regions, you might have 10, 15 different markets closing at different times with different rules. In Europe, you’re looking at “When’s Norway closing? What about Germany?” You have to make sure you get your orders down in time because if you miss it, you miss it.
The other obvious difference is currency. U.S. investors are giving us dollars, which we have to convert into local currency when we buy international stocks. So in addition to the equity trade, our teams need to address the currency piece in order to keep the cost of the trade to a minimum.
Gerry O’Reilly, Principal, Vanguard Indexed Equity Portfolio Management
Without getting proprietary, what would you say sets Vanguard’s trading desk apart?
Gerry O’Reilly: At a high level, one of the things that differentiates our desk is the level of experience. Mike has 30 years at Vanguard, and most of that is on the trading desk. I’m at 25 years and almost 23 on the desk. I’d say the average tenure for our traders is probably 12 to 13 years.
On this desk, we have people who specialize in different areas. When we get information from the street from our brokers about what’s going on with a name, we can funnel that to the appropriate person to address that information.
You learn from experience. None of us are set in our ways. You have to be willing to change and learn from past experience.
Note:
All investing is subject to risk, including the possible loss of the money you invest.
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