Can AI-Powered Stock Algorithm Lead Vanguard Investors to Higher Profits?

This premium article on AI stock algorithm application for Vanguard investors was written by Jessica Kremer – Analyst at I Know First.


  • Vanguard is a reputable investment firm that offers various investment products among a plethora of education material. 
  • The company is known for its lower expense rate for trading mutual funds and ETFs, making it a particularly good platform for those investments
  • I Know First can provide Vanguard investors with multiple stock forecasting options, including custom forecasts for individual portfolios

Vanguard is one of the world’s largest investment management firms, with 19 locations worldwide and 17,600 employees. The brokerage offers about 425 low-cost traditional funds and ETFs. It is the world’s largest provider of mutual funds and the second largest provider of ETFs. Additionally, Vanguard offers brokerage services, variable and fixed annuities, educational account services, financial planning, asset management, and trust services.

What Vanguard Does Best?

Vanguard is a particularly good platform for low-cost funds, as founder Jack Bogle actually invented the index fund. Although other brokerages have slashed costs (in some cases to be lower than Vanguard), Vanguard still remains the top in this platform. 

Vanguard’s mutual funds and ETFs are significantly less expensive than the industry average. The average Vanguard mutual fund and ETF expense ratio is 82% less than the industry average. Vanguard’s average expense ratio is 0.10%, while the industry average is 0.57%.  This results in investors ultimately saving more using Vanguard than other platforms, as can be seen with the graphic below. 


The company also boasts an impressive collection of mutual funds, with more than 3,100 no transaction fee mutual funds. Of these funds, Vanguard offers investors multiple options to choose from. Options include actively managed mutual funds, which are funds curated by investment managers, target-date retirement funds, which are popular in employer-sponsored retirement plans, and Vanguard ETFs. Vanguard ETFs allow investors to purchase a small stake of Vanguard’s funds at a significantly lower entry price.

How Vanguard Competes Against Other Leading Brokerages?

Source: Investopedia

Regarding the comparison above, it is easy to see that Vanguard offers its users more than its competitors. In comparison to Fidelity, a relatively similar platform, Vanguard stands out due to its specialization in ETFs, as well as its ability to trade fractional shares. This development is significant, as it allows investors of all different financial positions a way into trading stocks. This then diversifies Vanguard’s user base, and encompasses a larger demographic of investors. Although the company only allows users to buy fractional shares with mutual funds, this is an important step towards being more inclusive to all investors. Additionally, in comparison to Robinhood, Vanguard offers many more trading options, including international exchanges and bonds. In general, Vanguard offers a large variety of investment opportunities, allowing it to beat out competitors. 

Vanguard works best for online investors who can make large investments, as most Vanguard mutual funds required at least $3,000 to start. Vanguard also favors web-savvy investors, since investing online avoids multiple commission charges. In addition, the company boasts an impressive array of educational material and tools, enabling all investors regardless of experience to maximize profits. Finally, Vanguard is not targeted toward day traders, but investors with long-term holds. Vanguard is designed for long-term investing with low-cost index funds, rather than fast-paced selling and quick profits. Thus, since Vanguard is more retirement-oriented, it does not attract as many novice investors. Instead, more experienced investors with more capital are attracted to this brokerage. 

Why Investors Can Benefit From I Know First’s Stock Algorithm?

I Know First’s proprietary developed AI stock algorithm allows both private and institutional investors to make better decisions, and could provide similar guidance for Vanguard investors. Our model is 100% empirical, meaning it is not subjected to human bias, but instead based on historical data. The algorithm is also self-learning; it uses over 15 years of stock market data to constantly evolve, recalibrate, and enhance itself. The culmination of these factors promote accuracy in our forecasts, helping investors everywhere make more informed decisions. Thus, using our stock algorithm would provide an objective and statistically driven decision, helping all investors be more confident in their decisions. 

stock algorithm chart

I Know First also provides investors with forecasts for various companies in multiple industries. An example of our success casting predictions for these companies can be seen in Apple’s evaluation report. As can be seen below, our forecast provides investors with high hit ratios, earning a 100% hit ratio for year-long forecasts. Similarly, regarding our Tesla evaluation report, we can see that our predictions performed extremely well, earning a 100% hit ratio for the year long forecast. This is particularly good for Vanguard investors, who are more focused on long-term growth and quick buying and selling. Our algorithmic modeling ensures investors make the most objective and informed decisions, ensuring Vanguard investors earn greater profits. 

stock algorithm results chart
stock algorithm results chart

Special Focus on ETFs – I Know First’s Stock Algorithm Successes

Vanguard is most known for their ETF trading. Vanguard investors who trade ETFs could benefit from I Know First’s ETF forecasts. These forecast provides investors with both short and long term time horizons and enable them to make a larger return. For example, this month long ETF forecast from June 28, 2020, pictured below, earned a 100% hit ratio. 

stock algorithm heatmap

Additionally, in our 3 month forecast, our forecast earned a 100% hit ratio. This forecast saw a return of 28.18%, while the S&P 500 saw an average return of 13.80%. Both of these heatmaps include a bullish forecast for VGT, Vanguard’s Information Technology ETF. Our forecasting can provide Vanguard ETF investors with the ability to make more confident decisions when trading. All in all, our forecasts provide investors with accurate predictions, and can be of particular use for Vanguard investors in the long term.

stock algorithm heatmap

How Investors Can Benefit From I Know First’s AI Stock Algorithm?

I Know First can offer Vanguard investors different package options depending on their investment preferences. These packages would provide investors with AI-powered stock market predictions allowing them to make more informed decisions. Some package options that could be of interest to Vanguard investors include our ETF forecasts, featured above, as well as our array of global market indices forecasts. These international exchanges forecasts span from Brazil to Shanghai to Australia. Other forecasting options include megacap forecasts, pharma stocks forecasts, and big tech stock forecasts. Below are some of our successful forecasts in these packages, ranging from 3 months to 7 days. For example, our recent month-long megacap forecast produced a return of 11.51%, while the 3-months pharma stocks forecast produced a return of 43.37%. You can find more information about our existing packages here

Additionally, I Know First can generate personalized stock forecasts that can be tailored for specific portfolio requirements of individual investors. In this instance, I Know First will provide the investor with predictions for the individual stocks in his or her portfolio.


Vanguard is a well-known and trusted financial advisor, who’s investors can benefit from the proprietary developed AI forecasts of I Know First stock algorithm. The company stands out from investors due to its low expense ratios, saving on commissions for their investors over years. I Know First offers forecast packages which Vanguard investors would be able to profit off of, such as our ETF forecasts. Our forecasting would then provide these investors with data-based predictions instead of human ones and can serve as indicators to support an investment decision. Overall, our forecasts in conjunction with Vanguard’s already successful platform will allow investors to be more confident in their decisions, and ultimately, increase their returns. 

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Please note-for trading decisions use the most recent forecast.