Wealthify vs Vanguard: What's the difference?

Whether you're just starting your investment journey or looking to refine your strategy, understanding these differences is key.

We compare Wealthify and Vanguard across several important categories to help you decide which might be the better fit for your financial goals. 

What is the difference between Wealthify and Vanguard? 

Wealthify is a UK-based robo-adviser that launched in 2016. It offers fully managed investment portfolios tailored to your risk appetite.

You don’t need to pick individual funds or shares, instead, Wealthify’s team creates and manages your portfolio using passive investments like ETFs.

It's designed for those who want a ‘hands-off’ investing experience. 

Vanguard, on the other hand, is a global investment giant with a strong reputation for low-cost index funds.

Its UK platform, Vanguard Investor, allows individuals to invest directly in its own range of funds.

Unlike Wealthify, Vanguard is not a robo-adviser. Instead, you choose from a range of funds or ready-made portfolios such as the LifeStrategy or Target Retirement ranges. 

Wealthify and Vanguard: how do the fees compare? 

Understanding the cost of investing is crucial, as fees can eat into your returns over time. Here’s how Wealthify and Vanguard stack up: 

Wealthify fees 

Wealthify charges two main fees: 

• Management fee: 0.60% per year for Original plans, and 0.70% for Ethical plans.

• Fund costs: Typically around 0.16%-0.18% depending on your portfolio. 

Vanguard fees 

Vanguard’s fee structure is straightforward: 

• Account fee: 0.15% per year (capped at £375). 

• Fund fees: 0.06% to 0.79%, depending on the type of fund you choose.

Is Wealthify or Vanguard better? 

The answer depends on what you’re looking for in an investment platform.

Let’s break it down by some key categories: 

Range of investments 

Wealthify offers five risk-based portfolios (Cautious to Adventurous), with the option for ethical investing. You don’t pick your own funds; it’s fully managed.

Vanguard offers over 85 funds, including its well-known LifeStrategy and Target Retirement portfolios. You can also build a custom portfolio using individual funds. 

Vanguard offers more flexibility and choice, especially for hands-on investors. 

Research and guidance 

Wealthify keeps things simple and user-friendly, but offers limited educational content or market analysis.

Vanguard provides high-quality investor education, tools, and regular commentary on markets and investing. 

Vanguard might be better for investors who want to learn and engage with their investments. 

Brand reputation 

Wealthify is owned by Aviva, a well-established UK insurer, which adds credibility and financial backing. 

Vanguard is one of the world’s largest asset managers, managing over $10 trillion globally. It is known for its client-first structure — Vanguard is owned by its investors.  

Can you open accounts with both Wealthify and Vanguard? 

Yes, you can open accounts with both providers. 

This could be a smart move if: 

• You want diversification across different investment styles.

• You like the simplicity of Wealthify, but also want to build a custom portfolio with Vanguard.

• You’re using different tax wrappers, such as a Stocks and Shares ISA with one provider and a pension (SIPP) with another. 

Both platforms offer: 

• Stocks and shares ISAs

• Junior ISAs

• General investment accounts

• Pensions (SIPPs) 

Opening accounts with both can give you flexibility and more control over how your money is managed. 

Which is better for passive, long-term investing? 

If your goal is to invest passively over the long term, both platforms are well-suited — but in slightly different ways. 

Wealthify is deal if you want everything handled for you, fund selection, rebalancing, and market monitoring. Just pick your risk level and let them do the rest. 

Vanguard is great if you want to invest in globally diversified funds at a low cost and don’t mind doing a bit of research. Their LifeStrategy funds are popular for long-term, passive investors. 

How do their investment philosophies differ? 

While both platforms favour passive investing, their philosophies have key distinctions. 

Wealthify uses passive investments (e.g., ETFs) to create diversified portfolios, focuses on behavioural simplicity (less choice means fewer opportunities for poor decision-making) and offers ethical investing options for those prioritising ESG values. 

Vanguard believes in long-term, low-cost investing using its own index funds, advocates a "buy and hold" approach, ideal for retirement planning. 

In essence, Wealthify offers passive investing done for you, while Vanguard gives you the tools to do it yourself, simply and affordably. 

Get expert financial advice 

Choosing between Wealthify and Vanguard comes down to your personal preferences, financial goals, and how much control you want over your investments. 

If you want a simple, automated investment with no need to monitor the markets, Wealthify may suit you best. 

If you're comfortable choosing your own funds and want to minimise fees, Vanguard offers unbeatable value and transparency. 

However, remember that no one-size-fits-all solution exists in investing.

If you're unsure about which provider aligns with your long-term goals, it’s wise to speak with a regulated financial adviser. They can help you build a strategy tailored to your needs, whether that involves Vanguard, Wealthify, or a mix of other options entirely.