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Voya Cuts Fees on Vanguard Portfolios in Robo Offering

October 5, 2020

Voya has reduced fees it charges on its digital-only robo for Vanguard portfolios available through individual retirement accounts, Roth IRAs and other individual accounts, according to news reports.

Clients of Voya Digital Adviser with less than $75,000 in their accounts will pay 95 basis points on Voya Wealth Portfolios Vanguard ETF Series, compared to the 100 bps they paid before, while those with balances of $75,000 and above will pay 90 bps, down from 95 bps, FA-IQ sister publication Ignites writes, citing a company disclosure filed Thursday.

In addition, the company lowered custody fees on the Vanguard portfolios by 5 bps, to 9 bps, but the administrative fee remains 26 bps and advisor fees are staying at 60 bps, according to the filing cited by Ignites. There are no strategist fees on the Vanguard ETF series, which includes five passive portfolios and a $5,000 account minimum, the publication writes. 

Voya is keeping the 110 bps fee the same on iShares portfolios, the other ETF series it offers on its digital-only robo, according to Ignites. The Voya Global Perspective Market Models iShares ETF series includes four risk profiles and a $25,000 account minimum, the publication writes. Voya lowered the custody fees for the iShares portfolio by 5 bps, to 9 bps, but raised administrative fees by 5 bps, to 23 bps, according to the document cited by Ignites. The series also has a 60 bps advisor fee and an 18 bps strategist fee, which are both staying the same, the publication writes.

A company spokesperson confirmed the fee changes to Ignites.

“This is part of Voya Financial Advisors’ broader strategy to reducing pricing on many of its fee-based products, including its Voya Digital Adviser solution,” she tells the publication in an email.

Voya’s move follows recent fee cuts at other firms’ robos. Fidelity lowered fees, as well as minimums on their robos, as did Wells Fargo, Ignites writes. 

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By Alex Padalka
  • To read the Ignites article cited in this story, click here if you have a paid subscription.
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Tags:  Technology , Fees and compensation , Portfolio management , Fidelity , Vanguard , Wells Fargo , iShares , Voya Financial

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