VALLEY FORGE, PA — Vanguard has announced a significant expansion of its groundbreaking Investor Choice pilot program, designed to empower individual and institutional investors to actively participate in proxy voting decisions. Starting with the 2025 proxy season, the program will see the addition of three new funds, two new voting policy options, and the inclusion of retirement plan sponsors. This expansion will allow nearly four million investors, advisors, and retirement plan sponsors to influence shareholder matters, encompassing nearly $250 billion in assets under management.
Launched in early 2023, Vanguard Investor Choice was developed to enable individual investors to have a more direct impact on the governance of portfolio companies held within participating Vanguard funds. By choosing from carefully selected proxy voting policy options, investors can ensure their voices are represented on key shareholder issues.
“Vanguard Investor Choice is grounded in the foundational belief that empowering investors to influence how their proxies are voted helps create a healthier corporate governance ecosystem,” said John Galloway, Global Head of Investment Stewardship at Vanguard. “Consistent with our investor-owned, passive investment approach, we are excited to further expand Investor Choice by adding new funds and policy options, and begin engaging with retirement plan sponsors, so we can ensure that more investors can make their voices heard on proxy voting matters as they seek to achieve their long-term financial goals.”
Program Growth and Participating Funds
For the upcoming proxy season, Vanguard has nearly doubled the scope of the pilot program. Eight mutual funds and ETFs will now participate, reflecting the growing interest among investors in influencing corporate decision-making. Among the newly eligible funds are the Vanguard High Dividend Yield Index Fund, the Vanguard Tax-Managed Capital Appreciation Fund, and the Vanguard Tax-Managed Small-Cap Fund. These funds join a diverse lineup that already includes the Vanguard S&P 500 Growth Index Fund and Vanguard ESG U.S. Stock ETF.
The inclusion of additional funds broadens the program’s reach, offering investors more opportunities to customize how their shares are voted in alignment with their values and financial goals.
Integration of Retirement Plan Sponsors
One of the most notable expansions of the program is its extension to retirement plan sponsors. Through this initiative, sponsors of 401(k) and other retirement plans offering eligible Vanguard funds may now consider providing participants the opportunity to exercise proxy voting choice in their investments. This marks a significant step forward in democratizing shareholder participation at scale.
Introduction of New Voting Policy Options
Following investor feedback, Vanguard unveiled two new voting policy options to further diversify available choices in the pilot program.
- The Mirror Voting Policy, which replaces the prior “Not Voting” Policy, enables investors’ shares to be voted in alignment with the proportional votes of other shareholders across the concerned company.
- The Third Party Wealth-Focused Policy, crafted with the recommendation of third-party provider Egan-Jones, emphasizes maximizing shareholder value and is insulated from political or social considerations.
These additions expand a lineup that already includes existing options such as the Company Board-Aligned Policy, the Third-Party ESG Policy, and the Vanguard-Advised Funds Policy.
“Guided by our mission and legacy of taking a stand for investors, we are committed to continuing to expand Investor Choice in a thoughtful, straightforward, and efficient way so that more and more investors can make their voices heard,” Galloway added.
Pioneering Investor Engagement
Vanguard Investor Choice represents a bold step in reshaping how individuals and institutions interact with the companies they invest in. By allowing shareholders to select proxy voting preferences that align with their principles, the program advances Vanguard’s efforts to create a stronger and more inclusive corporate governance framework.
With the 2025 proxy season on the horizon, the expansion of this program spotlights Vanguard’s efforts to empower its investors. By offering greater accessibility to proxy voting and enhancing engagement opportunities, Vanguard continues to reinforce its leadership in innovation within the financial industry.
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