Envestnet announced an expanded strategic relationship with Vanguard to provide financial advisors with scalable, tax-efficient investment solutions by combining Vanguard’s Advisor’s Alpha® framework and model portfolios with Envestnet’s Adaptive WealthTech platform.
The collaboration integrates Vanguard’s Advisor’s Alpha framework into Envestnet’s Wealth Management Platform, pairing it with Envestnet’s tax-aware portfolio management technology. The goal is to help advisors deliver more personalized, tax-efficient investment strategies while simplifying what has traditionally been a manual and complex process.
A central component of the initiative is Vanguard’s Advisor’s Alpha research, which emphasizes tax-efficient retirement planning and tax-loss harvesting as key drivers of long-term client value. Through the integrated platform, advisors can continuously manage tax implications throughout the year while keeping portfolios aligned with clients’ investment objectives.
Vanguard is also joining Envestnet’s Fund Strategist Tax Management (FSTM) Advantage program. The program enables advisors using eligible Fund Strategist Portfolios—including Vanguard Active-Passive model portfolios—to apply ongoing tax management based on each client’s tax sensitivity preferences. Rather than focusing solely on year-end tax planning, the technology continuously evaluates the tax impact of portfolio adjustments while balancing tax efficiency with adherence to the intended investment strategy. Participating asset managers help cover the platform’s tax overlay service fees for eligible portfolios, expanding access to sophisticated tax management capabilities.
Envestnet said the partnership is designed to help advisors better demonstrate their value by improving after-tax investment outcomes, mitigating unnecessary capital gains exposure, and retaining more of investors’ returns over the long term.
KEY QUOTES:
“We’re proud to expand our relationship with Vanguard and build on how we support financial advisors together. Tax management is no longer a year-end exercise. Advisors increasingly need solutions that help them manage tax implications throughout the year while keeping their portfolios aligned with their clients’ long-term goals. By bringing together Vanguard’s Advisor’s Alpha framework with Envestnet’s platform and tax-aware portfolio management capabilities, we’re helping advisors more clearly demonstrate their value and deliver more personalized, tax-efficient outcomes for clients.”
Dana D’Auria, Co-Chief Investment Officer and Group President of Solutions at Envestnet
“Vanguard’s Advisor’s Alpha framework has long underscored the meaningful value financial advisors can bring to client outcomes. Combined with the scale of Envestnet’s wealth management ecosystem, this work helps advisors more confidently adopt model portfolios and tax-efficient strategies — delivering more disciplined, better-informed outcomes for investors.”
Eve Cout, Head of Advisor Solutions, Financial Advisor Services at Vanguard
“Our technology continuously evaluates the tax consequences of portfolio decisions, seeking to balance the cost of taxes with maintaining alignment to the intended investment strategy. While advisors cannot control markets, they can help improve after-tax outcomes for clients. By helping mitigate unnecessary capital gains exposure and retain more of what investors earn, tax management becomes one of the most powerful and measurable ways advisors can create long-term value.”
Dana D’Auria, Co-Chief Investment Officer and Group President of Solutions at Envestnet
