Vanguard Buys Altruist, Taking Aim at Schwab's RIA Custody Business
SCHW sits 35% above its 52-week low of $83.96.
Summary
Vanguard is acquiring Altruist, a fintech that provides trading and technology to registered investment advisors. The deal puts Vanguard in direct competition with Schwab and Fidelity, the two largest RIA custodians. No terms were disclosed, but the acquisition is expected to close later this year. This is a strategic move by Vanguard to expand its reach with financial advisors, leveraging Altruist's technology platform. For Schwab, this represents a new competitive threat in a core business line, though the immediate financial impact is unclear given the lack of deal terms. Wealth management stocks fell following the announcement.
At the time of this announcement, SCHW was trading at $113.52 on NYSE in the Finance sector, with a market capitalization of approximately $194.2B. The 52-week trading range was $83.96 to $114.53. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.