Vanguard is a giant in the investment world, managing over $10.4 trillion in global assets and serving more than 50 million investors worldwide. Renowned for its low-cost index funds, ETFs, and a customer-first approach, Vanguard has transformed the investment industry by making passive investing more accessible.
It offers 428+ funds globally, including 212 in the US and 216 in international markets, providing a broad range of investment options. In 2025, Vanguard implemented its largest-ever fee reduction across 87 of its funds, estimating that this will save its investors over $350 million in 2025. [1]
The Group is exploring entry into private equity and private credit markets to offer diversified investment portfolios, acknowledging that approximately 90% of US companies with over $50 million in revenue are privately held.
However, it’s not the only game in town. In this article, I highlight the top competitors of Vanguard, examining their strengths, investment offerings, and what makes them a better fit for certain investors.
Whether you’re seeking firms with zero-expense ratio funds, superior active management, advanced trading platforms, or more personalized wealth services, exploring these alternatives can help you refine your investment strategy.
Did you know?Vanguard has been criticized for its passive approach to environmental, social, and governance (ESG) factors. As of 2025, Vanguard holds investments in 58 fossil fuel stocks, with a total valuation exceeding $106 billion. [2]
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14. Invesco Ltd.
Established in 1978AUM: $1.8 trillion
Revenue: $6.06 billion
Competitive Edge: Strong ETF offerings, including Smart Beta ETFs
Invesco Ltd. is a global independent investment management firm that provides a comprehensive suite of investment solutions tailored to meet the diverse needs of individual and institutional investors.
Their specialized investment teams concentrate on various asset classes, regional markets, and investment styles, enabling clients to access a broad spectrum of investment opportunities.
In 2024, the firm expanded its range of thematic ETFs by introducing strategies focusing on artificial intelligence (AI), cybersecurity, and defense. These ETFs are benchmarked against indices developed by Kensho, a division of S&P Global Indices known for leveraging AI technology. The AI and cybersecurity indices incorporate environmental, social, and governance (ESG) screening, excluding companies with controversial activities or low ESG scores. [3]
13. T. Rowe Price
Established in 1937AUM: $1.61 trillion
Revenue: $7.09 billion
Competitive Edge: Expansion of actively managed ETFs
T. Rowe Price is a global investment management firm known for its actively managed mutual funds, retirement plans, and institutional investment strategies. It emphasizes stock selection and research-driven investment strategies as key drivers for generating long-term returns.
With a team of over 525 investment professionals, the firm ensures clients receive the insights they need. Its portfolio managers have an average of 23 years of industry experience and an impressive 97% retention rate.
T. Rowe Price funds have consistently outperformed their benchmarks, with leading funds like Blue Chip Growth Fund and Capital Appreciation Fund delivering long-term gains. More specifically, their funds outperformed comparable passive funds by an average of 0.78% across all periods analyzed over two decades, delivering higher returns in 71% of those periods. [4]
The firm, alongside Columbia Threadneedle, has actively opposed certain high-yield debt practices employed by private equity firms. It has declined specific debt offerings or demanded stronger protections to safeguard investors, addressing concerns over tactics that could disadvantage original lenders.
12. Wellington Management Company
Established in 1933AUM: $1.1 trillion
Revenue: $1 billion+
Competitive Edge: Expertise in active management
Wellington Management Company is a privately held and one of the largest investment management firms that offers active asset management, fundamental research, and custom investment solutions for institutional clients.
With an annual trading volume exceeding $13 trillion, Wellington has the scale to build strong relationships with broker-dealers, enhance its risk management infrastructure, and offer investors a state-of-the-art trading platform. [5]
Unlike Vanguard, which is known for its passive indexing approach and low-cost mutual funds, Wellington is an active manager, employing a research-driven investment process. It has more than 800 investment professionals, bringing together experts in research, trading, and data science to serve its 3,000+ clients.
The company recognizes the transformative potential of AI and invests in understanding and integrating AI to identify new use cases and productivity gains, particularly in late-stage companies. Through its Investment Science Team (iSci), Wellington applies data science innovations to enhance efficiency, uncover new investment opportunities, and strengthen risk management.
11. Northern Trust Asset Management
Established in 1889AUM: $1.6 trillion
Revenue: $15.8 billion (for the whole company)
Competitive Edge: Strong in institutional asset management and fiduciary services
Northern Trust Asset Management (NTAM) is the investment arm of Northern Trust Corporation, specializing in custom investment solutions, factor-based investing, and ESG strategies tailored for large institutions.
NTAM provides both actively and passively managed investment strategies across equities, fixed income, and alternative asset classes such as private equity and hedge funds. Its asset distribution consists of approximately 60% in equities, 20% in cash, and 10% in fixed assets, with around 65% of its total assets managed passively. [6]
In 2023, the firm, along with Coalition Greenwich, surveyed 150 global asset managers to understand the evolving challenges and opportunities within traditional, long-only asset management. The findings highlighted the importance of adaptive operating models and strategic outsourcing to support growth priorities.
In recent years, Northern Trust has launched several new ESG and climate-focused investment solutions, including FlexShares ETFs, further expanding its leadership in sustainable investing. It also aims to achieve net-zero carbon emissions by 2050.
10. Morgan Stanley Investment Management
AUM: $1.7 trillion
Revenue: $54.6 billion (for the whole company)
Competitive Edge: Cutting-edge ESG and impact investing strategies
Morgan Stanley Investment Management (MSIM) is the asset management division of Morgan Stanley, one of the world’s largest financial institutions. It provides active and passive investment strategies in equities and fixed income for institutional and retail clients.
MSIM is deeply integrated with Morgan Stanley Wealth Management, which oversees over $6.3 trillion in client assets. With an AUM exceeding $1.67 trillion, MSIM contributes 9.9% to the firm’s total revenue.
In 2021, Morgan Stanley acquired Eaton Vance for $7 billion, enhancing its fixed-income and active investment offerings. This acquisition strengthened MSIM’s municipal bond and tax-efficient investment capabilities, giving it a competitive edge in areas where Vanguard is less dominant.
Furthermore, Morgan Stanley holds more than $820 billion in ESG assets. making it one of the world’s largest sustainable investment managers. MSIM integrates climate risk analysis, carbon-neutral investments, and impact funds, surpassing Vanguard’s ESG efforts. [7]
9. UBS
Established in 1998AUM: $3.85 trillion
Revenue: $46.31 billion (for the entire group)
Competitive Edge: Acquisition of Credit Suisse
UBS Group, headquartered in Switzerland, is a multinational investment bank and financial services company, renowned for its wealth management, asset management, and investment banking services. It manages
Its core business focuses on wealth management for high-net-worth individuals, with the US serving as its primary market. This division offers investment solutions across asset classes, including equities, fixed income, real estate, and alternative investments, catering to both institutional and individual clients.
In 2023, the Group acquired Credit Suisse in a Swiss government-backed effort to stabilize the financial system amid global banking concerns. This strategic acquisition has significantly strengthened UBS’s position in the global banking industry. [8]
Looking ahead, UBS is capitalizing on the rising demand for alternative assets by introducing new products in markets like Australia, with a focus on private markets, real estate, and hedge funds. The Group also aims to expand its global wealth management portfolio, targeting $5 trillion in assets under management by 2028. [9]
8. Amundi Asset Management
AUM: $2.2 trillion
Revenue: $6.29 billion
Competitive Edge: Strongest asset manager in Europe
Amundi Asset Management is Europe’s largest asset manager. It was established in 2010 through the merger of Crédit Agricole Asset Management and Société Générale Asset Management. Since then, it has expanded aggressively through acquisitions and global partnerships, making it a dominant player in the European and Asian markets.
Amundi’s business model revolves around diversified investment solutions for institutional investors, corporate clients, and retail customers. It manages more than 12,000 investment funds, ranging from traditional equity and fixed-income funds to thematic, ESG, and alternative funds.
In fact, the firm has a dedicated platform focused on alternative and real assets, managing over $76 billion in these asset classes. [10]
Amundi has expanded aggressively in Asia, particularly in China, India, and Southeast Asia. Its joint venture with the Bank of China provides a strategic advantage in China’s asset management industry—a market where Vanguard has faced challenges in gaining traction.
In 2024, the firm announced the acquisition of Swiss company Alpha Associates for €350 million. In the same year, it also acquired German wealth software firm Aixigo for €149 million, aiming to strengthen Amundi’s technological capabilities and improve operational efficiency. [11]
7. Goldman Sachs Asset Management
Established in 1988AUM: $3.14 trillion
Revenue: $16.14 billion
Competitive Edge: Active management and smart beta ETFs
Goldman Sachs Asset Management (GSAM) is the investment management division of Goldman Sachs Group, one of the world’s largest and most influential financial institutions. It specializes in actively managed portfolios, hedge funds, private equity, quantitative strategies, and smart beta ETFs.
While Vanguard is investor-owned and structured as a mutual company, GSAM is a subsidiary of a publicly traded bank, meaning it operates with a profit-driven approach and is more aggressive in expanding its product offerings.
Through entities like Goldman Sachs Capital Partners, GSAM engages in private equity investments, deploying capital into private companies and infrastructure projects. For example, in 2020, GSAM completed the final close of West Street Capital Partners VIII, raising $9.7 billion.
The firm generates revenue through investment advisory fees, management fees, performance-based fees, and alternative investment solutions. It primarily caters to high-net-worth individuals, corporations, institutional investors, pension funds, and sovereign wealth funds.
In 2024, Goldman Sachs’ asset and wealth management business division reported $16.14 billion in revenue, a 16% year-on-year increase. In 2024, Goldman Sachs initiated “Project Voyage,” a strategic plan to reduce costs by restructuring its workforce. The plan involves relocating employees to lower-cost offices and laying off underperforming Vice Presidents. [12][13]
6. Capital Group
Founded in 1931AUM: $2.7 trillion
Revenue:$8.1 billion
Competitive Edge: Stronger presence in international markets
Capital Group is privately held and is a strong proponent of actively managed funds. It manages pension funds, endowments, and foundations, competing with Vanguard’s institutional investment services.
Their top mutual fund, the American Funds Growth Fund of America (AGTHX), ranks among the world’s largest actively managed mutual funds, competing directly with the Vanguard Growth Index Fund (VIGAX). Plus, its EuroPacific Growth Fund (AEPGX) stands as one of the largest international equity funds, rivaling the Vanguard International Growth Fund (VWIGX).
The company generates revenue primarily through management fees from its actively managed funds, investment advisory services, and institutional asset management.
In 2023, Capital Group introduced 12 active-passive model portfolios, combining its actively managed mutual funds with passively managed ETFs. In 2024, the Group launched its flagship global equity strategy, the New Perspective Fund, as an Open-Ended Investment Company (OEIC) in the UK. [14]
5. JPMorgan Asset Management
AUM: $3.3 trillion
Revenue: $5.8 billion
Competitive Edge: Stronger active fund management
JPMorgan Asset Management offers a mix of passive index funds, actively managed funds, ETFs, and alternative investments. It serves a broad range of clients, including institutional investors, pension funds, high-net-worth individuals, and retail investors.
The Asset Management firm leverages the financial strength of JPMorgan Chase, which has total assets exceeding $4 trillion and is one of the largest banks in the world. It has access to JPMorgan Chase’s advanced research, analytics, and risk management tools, enhancing investment strategies and portfolio management.
The other key competitive advantage of JPMorgan over Vanguard is its strong lineup of actively managed mutual funds and hedge fund-like strategies. While Vanguard relies primarily on index funds, JPMorgan Asset Management generates revenue from higher expense ratios on its active funds
The company employs more than 80 senior analysts with an average of 18 years of industry experience. Plus, it is investing heavily in AI and machine learning models to enhance risk management and portfolio construction.
Anticipating substantial growth in the European active ETF market, JPMorgan is gearing up to launch active ETFs, aiming to capitalize on the projected market expansion to $4.5 trillion by 2030. [15]
4. State Street Global Advisors
Founded in 1978AUM: $4.72 trillion
Revenue: $22.05 billion
Competitive Edge: Pioneering Role in ETFs
State Street Global Advisors is a pioneer in passive investing and is best known for launching the first-ever ETF in the US –the SPDR S&P 500 ETF (SPY)– in 1993.
The firm offers a broad range of bond funds and fixed-income products, catering to institutions and high-net-worth investors. It also manages private equity, real estate, and ESG (Environmental, Social, and Governance) investments.
SSGA operates in over 100 global markets, managing $4.72 trillion in assets under management (AUM), including $3.12 trillion with institutional clients and $1.6 trillion with financial intermediary clients. [16]
Demonstrating its commitment to innovation, SSGA has actively introduced new investment products. In 2024, it partnered with Bridgewater Associates to launch an ETF based on Bridgewater’s renowned “All-Weather” strategy. In 2025, SSGA collaborated with Apollo Global Management to introduce an ETF granting investors access to private credit markets, an asset class traditionally reserved for institutional investors. [17]
3. Fidelity Investments
Founded in 1946AUM: $5.8 trillion
Revenue: $32.7 billion
Competitive Edge: Superior 401(k) and retirement solutions
Fidelity Investments strongly focuses on asset management, brokerage services, and retirement planning. As a privately owned firm under the Johnson family, it benefits from greater flexibility in decision-making and long-term strategic planning.
Both Fidelity and Vanguard provide a range of mutual funds and ETFs. However, Fidelity has been innovative with zero-expense-ratio mutual funds, attracting cost-conscious investors. It also caters to active traders, through its comprehensive brokerage services.
Both offer commission-free online stock and ETF trades. For options trading, Fidelity charges $0.65 per contract, whereas Vanguard charges $1 per contract for clients with less than $1 million. Broker-assisted trades at Fidelity are $32.95, compared to Vanguard’s $25 fee.
Fidelity manages more than $5.8 trillion in AUM and oversees $15 trillion in assets under administration. For FY 2024, the company reported $32.7 billion in revenue, up 16% from 2023. Its operating income reached $10.3 billion, reflecting a 21% growth compared to the previous year. [18]
2. Charles Schwab Corporation
Founded in 1971AUM: $10.1 trillion
Revenue: $18.73 billion
Competitive Edge: Fully automated Robo-Advisor
Charles Schwab Corporation is a leading full-service brokerage firm, providing investment management, wealth advisory, banking services, and advanced trading platforms. The company oversees over 34 million brokerage accounts, serves 5 million corporate retirement plan participants, and manages nearly 2 million banking accounts.
Unlike Vanguard, which is mutually owned by its investors, Schwab is a publicly traded company with a market cap of over 130 billion. In February 2025, Schwab announced a $1.5 billion stock repurchase plan reflecting its strong financial performance and commitment to returning capital to shareholders. [19]
The company generates revenue from banking and lending services, asset management and administration fees, trading and transaction fees, and Robo-Advisory services (which compete with Vanguard’s personal advisor services).
Both Schwab and Vanguard offer commission-free trading for online equity and EFT trades. However, Schwab charges $0.65 per options contract, while Vanguard charges $1.00. [20]
Furthermore, to enhance its competitiveness, Schwab lowered the expense ratio for its Schwab International Dividend Equity ETF from 0.14% to 0.08%. The company also plans to introduce spot cryptocurrency trading to meet rising client demand and adapt to the evolving financial industry.
1. BlackRock
AUM: $11.55 trillion
Revenue: $19.36 billion
Competitive Edge: Advanced analytics and risk management
BlackRock is the world’s largest asset management firm, serving clients in over 100 markets, including sovereign wealth funds, pension funds, corporations, retail investors, and governments. Unlike Vanguard, which primarily focuses on passive investing and low-cost index funds, BlackRock offers a mix of actively managed funds, private capital investments, and cutting-edge financial technology solutions.
It is not just an investment management firm — it’s a major player in financial technology. BlackRock’s proprietary risk management system, Aladdin, is widely used by institutional investors, banks, and other asset managers to analyze risk exposure and optimize portfolios.
Its iShares platform is a leader in the global ETF market, offering various funds that cater to diverse investment strategies. Notably, the iShares Core S&P 500 ETF (IVV) is among the world’s largest ETFs, with assets exceeding $540.66 billion. [21]
In 2024, BlackRock acquired Global Infrastructure Partners for $12.5 billion, enhancing its infrastructure investment capabilities. It also led a consortium to acquire a majority stake in two Panama Canal ports from Hong Kong’s CK Hutchison for $22.8 billion — a strategic pivot towards private asset ownership and infrastructure investments. [22]
Read More
- 19 Largest Banks In The World By Total Assets
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- 12 Largest Private Equity Firms In The World
- Isabel Wang, Vanguard is making it even cheaper to invest in ETFs, MarketWatch
- Vanguard 500 Index Fund, Investments in major fossil fuel companies, Fossil Free Funds
- Alf Wilkinson, Invesco launches ETFs focusing on AI, cyber security and defence, Financial Times
- About Page, Helping investors thrive in an evolving world, T. Rowe Price
- Why Wellington, Discover a different kind of investment partner, Wellington Management Company
- Overview, Expertise managing assets across the investment spectrum, NTAM
- Sustainability, Goal to reach net-zero financed emissions by 2050, Morgan Stanley
- Ad hoc announcement, UBS completes merger of UBS Switzerland AG and Credit Suisse AG, UBS
- News, UBS targets $5 trillion AUM by 2028, Hubbis
- Real & Alternative Assets, A leading player in private markets’ asset management, Amundi
- Article, Acquisition of Alpha Associates, Amundi
- Financial Results, Asset management revenues rose at Goldman Sachs, WealthBriefing
- Reed Alexander, Goldman Sachs’ grand plan to thin its ranks, BusinessInsider
- Newsroom, Capital Group launches 12 new active-passive model portfolios, Capital Group
- Lauren Gibbons, European ETF Assets May Double by 2030, Yahoo Finance
- About Page, Total AUM with institutional clients and financial intermediary clients, SSGA
- Christine Idzelis, State Street’s private-debt ETF launched with major buzz, MarketWatch
- Annual Report, Fidelity employs 77,000+ associates, Fidelity Investments
- Press Release, The $1.5 billion stock repurchase, Charles Schwab Corporation
- Eric Reed, Vanguard vs. Charles Schwab, Smart Assets
- Steve Johnson, Vanguard deposes BlackRock as provider of world’s second-largest ETF, Financial Times
- Press Releases, Blackrock completes acquisition of Global Infrastructure Partners, BlackRock
