Vanguard targets doubling European assets to $1 trillion by 2030

Vanguard plans to roughly double its European assets to $1 trillion within five years and become Britain's biggest retail investment platform, the firm's head of Europe told Reuters.

The Pennsylvania-based asset manager, which oversees $12 trillion globally, has helped transform the investment industry alongside US rival BlackRock by popularising low-cost index funds for retail investors, drawing money away from traditional active managers.

The European expansion target — starting from roughly $535 billion in regional assets — forms part of a broader plan under chief executive Salim Ramji to double Vanguard's total overseas assets to $2 trillion by 2030.

Vanguard plans to grow its exchange-traded fund range in Europe to 60–70 products from around 40, adding new fixed income, multi-asset and geographically focused funds, Europe head Cleborne said in an interview.

The firm will also pursue further distribution partnerships with fintechs and expand teams in Germany, Spain and France.

"A big part of our focus is to try to help people in Europe see themselves as investors," Cleborne said.

Vanguard's UK ambition puts it up against a highly competitive market.

The firm currently ranks fifth among UK retail investment platforms; overtaking Hargreaves Lansdown, which is roughly five times larger, would be required to reach the top spot.

Retail investing push

Cleborne welcomed the European Union's efforts to encourage retail investing but said government tax incentives remain essential. "Honestly, that can't come fast enough," he said.

Cyber and AI risks

Vanguard is exploring the use of artificial intelligence to provide clients with greater support and financial analysis. The firm is also engaging with Anthropic on cyber risks posed by its new Mythos model, Cleborne said.

"That's something that keeps all of us up at night, and we want to make sure that we are staying ahead," he said.