NEW YORK, Jan 28, 2026, 04:17 (EST)
- For the first time, Vanguard’s client assets outside the United States have surpassed $1 trillion
- The firm aims to reach close to 40 million international clients over the next five years
- UK portfolio changes underscore the tightrope walk between global expansion and domestic political pressures
Vanguard’s assets held by clients outside the U.S. have topped $1 trillion for the first time. The investment giant aims to almost double its international client count to around 40 million over the next five years. 1
This milestone is significant as Vanguard aims to attract more savers to foreign markets, where cash remains king and hurdles like fees, platforms, and paperwork can discourage newcomers. In Britain and some European countries, policymakers have been urging households to embrace more investment risk to strengthen retirement savings and boost economic growth.
Chief executive Salim Ramji is targeting international growth, with Vanguard planning to boost its customer base outside the U.S. from about 17 million to nearly 40 million within five years, the Financial Times reported. Meanwhile, Vanguard is scaling back its UK stock and bond holdings in its £52 billion LifeStrategy fund range, cutting the UK equity allocation to 20% from 25% and bonds to 20% from 35%, despite the UK government’s efforts to encourage more homegrown investment. 2
“Assets under management,” or AUM, is Wall Street speak for the total sum of client money a firm oversees. Hitting $1 trillion outside the U.S. signals not just scale but also reach — encompassing distribution, brand strength, and the capacity to cut costs as new accounts roll in.
Chris McIsaac, Vanguard’s international head, revealed that the firm’s assets outside the US have doubled in the last five years. “At this pace, it will take us another five to attract the next US$1 trillion,” he said. 3
Vanguard’s expanded overseas move puts it in closer contention with global heavyweights like BlackRock, as well as domestic banks and fund managers that dominate retail markets at home. This step also intensifies the battle over low-cost index funds and exchange-traded funds, or ETFs—portfolios of securities traded on exchanges like stocks.
The five-year target faces plenty of hurdles. A market selloff could deter fresh investment, regulators might delay cross-border product launches, and local political backlash can flare if a major firm scales back domestic holdings just as governments push to retain capital within their borders.
Vanguard is wagering that the steady shift from cash to markets will keep pace, banking on its pricing and straightforward approach to pull investors in. McIsaac’s “next $1 trillion” benchmark sets a rough timeline for this goal.
