# Vanguard Splits into 2 Entities

**URL:** <https://discussion.fool.com/t/vanguard-splits-into-2-entities/122965>\
**Category:** Macro Economic Trends and Risks\
**Created:** [January 18, 2026, 3:08pm UTC](https://discussion.fool.com/t/vanguard-splits-into-2-entities/122965 "2026-01-18T15:08:24Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![tjscott0](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/tjscott0/32/1083_2.png) [@tjscott0](https://discussion.fool.com/u/tjscott0)\
**Post date:** [January 18, 2026, 3:08pm UTC](https://discussion.fool.com/t/vanguard-splits-into-2-entities/122965/1 "2026-01-18T15:08:24Z")

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> **[Vanguard completes internal split into two giant teams -- VCM and VPM -- a...](https://riabiz.com/a/2026/1/17/vanguard-completes-internal-split-into-two-giant-teams-vcm-and-vpm-a-move-intended-to-streamline-but-also-to-assuage-concerns-about-lack-of-diverse-perspectives-in-the-proxy-voting-ecosystem-it-says)**
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> The Malvern, Pa., team split is about by a 75/25 ratio in terms of assets under management as the giant wagers it can reap the benefits of immensity and self-imposed competitive intensity.

_Vanguard Group is now officially a house divided against itself, a deliberate move to withstand the two potentially great threats to its future prosperity._

 

The Malvern, Pa. company’s asset management is now split into Vanguard Capital Management, LLC (VCM) and Vanguard Portfolio Management, LLC (VPM), unequal in size and differing in mission, but sometimes competing and situated apart from each other on Vanguard’s campus. See: In a massive overhaul, Vanguard will split its $10.4 trillion in funds between two ‘distinct’ management teams with separate trading desks potentially trading against each other, analyst says

_Jeff DeMaso: Move aimed at elephant in the Vanguard room.  
As a behemoth, Vanguard’s unwieldy size creates at least two concerning existential issues – namely that it can grow bloated and stagnant, and that its rising proxy powers can attract unwanted attention from regulators._

> **[In a massive overhaul, Vanguard will split its $10.4 trillion in funds...](https://riabiz.com/a/2025/6/25/in-a-massive-overhaul-vanguard-will-split-its-104-trillion-in-funds-between-two-distinct-management-teams-with-separate-trading-desks-potentially-trading-against-each-other-analyst-says)**
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> The index fund leader will separate 'hot button' corporate governance by team, and hopes to reap deeper focus, greater flexibility, and more opportunities for growth.

_VCM will function more as a “classic” Vanguard, managing lower-fee funds, target-date funds and big index funds._

 

VCM will defend Vanguard’s traditional cost leadership in foundational products …cost reduction, tracking efficiency, and operational excellence, and develop expertise in scale management.

VPM will manage more complex, active, factor and quantitative funds

_VPM enables growth in higher-margin specialized strategies … [including] factor ETF innovation, quantitative strategy advancement, and specialized analytics … [emphasizing]performance generation, innovation, and analytical value-add._

Fund split list here:

> **[investment\_advisory\_update\_fund\_groupings.pdf](https://corporate.vanguard.com/content/dam/corp/articles/pdf/investment_advisory_update_fund_groupings.pdf)**
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> 120.49 KB

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**Author:** ![WendyBG](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/wendybg/32/67464_2.png) [@WendyBG](https://discussion.fool.com/u/WendyBG)\
**Post date:** [January 18, 2026, 3:23pm UTC](https://discussion.fool.com/t/vanguard-splits-into-2-entities/122965/2 "2026-01-18T15:23:25Z")

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I wonder whether both sides of the new Vanguard will have equally poor customer service. I left Vanguard years ago after decades of being annoyed by their customer service.  
Wendy

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**Author:** ![pauleckler](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/pauleckler/32/2906_2.png) [@pauleckler](https://discussion.fool.com/u/pauleckler)\
**Post date:** [January 19, 2026, 2:43pm UTC](https://discussion.fool.com/t/vanguard-splits-into-2-entities/122965/3 "2026-01-19T14:43:16Z")

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I had a recent password issue w Vanguard and found their response ok. Keeping costs low means more AI response and fewer humans.