J.P. Morgan vs. Vanguard: Which Is the Best Personal Advisor for You?
Written by
Dawn Allcot
Edited by
Lindsey Kloosterman
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J.P. Morgan, part of JPMorgan Chase & Co., has a centuries-long history, dating back to 1799. In 2000, J.P. Morgan & Co. merged with The Chase Manhattan Corp. to form what is now called JPMorgan Chase & Co., with banking services provided by Chase and brokerage accounts and wealth management offered under the J.P. Morgan name.
See: 3 Things You Must Do When Your Savings Reach $50,000
The Vanguard Group was founded in 1975 and today manages assets totaling $8.1 trillion.
Here’s a look at how J.P. Morgan and Vanguard compare to help you decide which is best for you when it comes to personal advisor services.
Personal Advisor Services at a Glance
J.P. Morgan offers different tiers of investing, from $0 commission online stock, ETF and options trades on your own, to personal advisors who offer low-cost investment services. At the top tier, you’ll find J.P. Morgan’s Private Bank and Wealth Advisor services. You have to call for a personalized quote for the top-tier service since it is highly customized based on your needs and assets.
J.P. Morgan requires assets of at least $25,000 in a personal advisory account.
Vanguard outlines its fees clearly on its website, and the fees depend on the investments you choose. For low-cost Vanguard ETFs or for ESG ETFs, you’ll pay no more than $35 per $10,000 annually. The active/index investment option with ETFs and mutual funds charges no more than $40 per $10,000 annually.
J.P. Morgan vs. Vanguard: Features
| Feature | Vanguard | J.P. Morgan |
|---|---|---|
| Minimum initial deposit | $50,000 | $25,000 |
| Tax-loss harvesting | No | No |
| Fractional shares | No | No |
| Single stock diversification | No | No |
| Taxable accounts | Yes | Yes |
| 401(k) plans | No | No |
| Individual retirement accounts | Yes | Yes |
| Roth IRAs | Yes | Yes |
| Simplified employee pension IRAs | No | No |
| Trust accounts | No | No |
| 529 plans | No | Yes |
J.P. Morgan and Vanguard offer many similar services, with a few key differences. Here’s a look at the various features.
Opening an Account
It’s easy to open an account online with Vanguard or with J.P. Morgan, but keep the hefty minimums of $50,000 and $25,000, respectively, in mind.
Vanguard personal advisors may recommend keeping some of your current investments to lessen tax impacts.
Maintenance
Both platforms offer automatic rebalancing of your portfolio. You can make automated monthly deposits to put your savings on autopilot. You can also change your risk tolerance as needed.
Both platforms also put a wealth advisor at your fingertips at least 12 hours a day on weekdays. J.P. Morgan advisors are also available Saturdays during business hours. Your representative can help you prioritize your goals, discuss retirement spending, advise on debt management, and manage unexpected expenses or income changes.
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These personal advisors can get you started on a path toward wealth management, even if you aren’t starting with millions of dollars.
Retirement and College Planning
Both platforms offer a choice of Roth IRAs and regular IRAs to help you reach your retirement goals. J.P. Morgan also offers 529 plans with no upfront fees, so you can help your children get a head start on paying for their college education.
Portfolios
J.P. Morgan’s general investment allocation varies depending on your risk tolerance. You can expect a percentage of fixed-income investments, along with U.S. and international equities, with more stocks and equities in a longer-term, more aggressive portfolio.
Vanguard offers a choice of four ETFs to create a balanced portfolio. These ETFs are focused on U.S. stocks, U.S. bonds, international stocks and international bonds. Vanguard also offers an ESG-focused ETF for environmentally and socially conscious investors.
Goal Setting
Both J.P. Morgan and Vanguard help you gain a clear understanding of your financial portfolio and investment goals through a series of questions related to your age, assets, goals, time frame and risk tolerance.
You can always monitor the performance of your accounts and view the various asset allocations.
Tax-Advantaged Investing
Both accounts offer tax-deferred IRAs to help you plan for retirement. J.P. Morgan also offers a tax-deferred 529 college savings plan.
However, neither personal advisory firm offers tax-free ETF, stock or bond investing, and neither firm provides tax-loss harvesting or tax-gain harvesting services. You would need to speak with a tax accountant specializing in investments or another tax professional to help you navigate tax ramifications if you sell your investments at a profit.
Online and Mobile Experience
The Vanguard app for Android devices has a 2-star rating in the Google Play store. It is not as robust as other financial service apps.
J.P. Morgan, on the other hand, offers a tech-forward, easy-to-use app that allows you to track the performance of your portfolio and manage all your finances on one dashboard, including other J.P. Morgan and Chase accounts and external accounts.
Here’s how user ratings for the Vanguard and J.P. Morgan apps compare:
- Vanguard at the App Store: 4.7/5 stars, 170.28K reviews
- Vanguard at Google Play: 2/5 stars, 8.1K reviews
- J.P. Morgan Mobile at Google Play: 4.2 stars, 972 reviews
- J.P. Morgan Mobile at the App Store: 4.8 stars, 6.2K reviews
Security
Vanguard, like most financial service firms, uses state-of-the-art security standards and encryption to protect from fraud. If funds are taken from your account in an unauthorized online transaction, Vanguard will reimburse the assets stolen, according to its online fraud policy.
However, you must follow certain best practices to protect yourself, outlined in a section termed “Your responsibilities.” These include:
- Reviewing your accounts regularly
- Protecting your username, password and other account information
- Protecting your computer with up-to-date security and anti-spyware, antivirus and firewall software
- Not sharing personal or financial information in emails
- Cooperating with Vanguard in any investigations
J.P. Morgan uses multiple methods to secure your accounts, including asking for authentication if you sign on from an unfamiliar device. American Banker recently reported that JPMorgan Chase is using sophisticated AI technology to detect and prevent fraud.
However, J.P. Morgan does not specifically state that it will reimburse funds stolen as a result of online fraud.
Customer Service
Vanguard’s customer service hours span 8 a.m. to 8 p.m. ET, Monday through Friday.
J.P. Morgan’s hours are only slightly better, with phone service from 8 a.m. to 9 p.m., Monday through Friday, and Saturdays from 9 a.m. to 5 p.m.
J.P. Morgan vs. Vanguard: Which Is the Best Option?
Whether you choose J.P. Morgan or Vanguard depends on the level of service you want and your personal preferences. Fees, customer service and security measures are all comparable. J.P. Morgan has an edge when it comes to its app and technology.
Also, if you are currently holding money in a JPMorgan Chase Bank account, you may prefer to house your investments with the firm as well. Depending on your account balances, your investments could open doors to more personalized service and relationship banking with the U.S. financial leader.
FAQ
- Is J.P. Morgan better than Vanguard?
- J.P. Morgan offers many levels of investment services, from automated and self-directed investing with no or low fees up to wealth management for high-net-worth individuals.
- Vanguard is on the cutting edge of robo-advisory and personal wealth advisory services with very low fees that are easy to waive.
- J.P. Morgan's technology and app stand head and shoulders above Vanguard, but both are reputable firms.
- Is J.P. Morgan a good brokerage firm?
- J.P. Morgan is a solid brokerage firm with a centuries-long history. Deemed one of the financial organizations "too big to fail" by the U.S. government, you can feel secure about your money held in a J.P. Morgan account.
Information is accurate as of Aug. 4, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Advice services are provided by Vanguard Advisers Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Chase.
