Research summary
Survey reveals advisor opportunity on proxy voting
June 05, 2025
New data reveals that proxy voting choice programs offer advisors chances to engage with their clients. A recent Vanguard survey of more than 700 advisors indicates they anticipate limited interest from investors in these programs, but results from an investor survey show otherwise.
Survey results reveal different perspectives between advisors and investors
Vanguard surveyed financial advisors across multiple channels in March to understand their perspectives on proxy voting choice programs, which enable investors to help direct how their equity index funds vote at company shareholder meetings.1 This study follows our recent research outlining investor perspectives on proxy voting.
Together, the studies revealed a clear opportunity for advisors to connect with clients over proxy voting choice. Data from our individual investor survey on proxy voting, conducted in February 2025, found that investors have a strong interest in participating in the proxy voting process. Results from our March advisor survey suggest this might be a preference advisors didn’t expect.
When asked about these programs, most advisors surveyed reported thinking that less than 30% of their clients would be interested in such a proxy voting choice program, with registered investment advisors (RIAs) expecting the lowest participation. However, our individual investor proxy voting survey indicated that roughly three in five investors with more than $1 million in investable assets would participate in a program that allows them to influence the way their fund managers vote on their behalf.
FIGURE 1. Most advisors believe less than one-third of their clients would be interested in a proxy voting program
Notes: Total advisors: n=722, broker-dealers: n=469, registered investment advisors: n=253.
Source: Vanguard, Advisor Proxy Voting Survey, March 2025.
Views also differed among advisors and individual investors regarding shareholder preferences for voting decisions and how offering a proxy voting choice affects fund attractiveness.
Half of the individual investors surveyed agreed that it is “extremely” or “very” important for asset managers to consider investor preferences when casting votes for their equity funds, and more than half (58%) said they would be more likely to invest in a fund if they could influence the fund’s proxy voting decisions. This differs from advisor expectations, as shown in the charts below.
FIGURE 2. Just one in five advisors believe it is “extremely” or “very” important for fund managers to offer options that consider shareholder preferences when voting at company shareholder meetings, versus half for individual investors
Notes: Advisors: n=722, Individual investors: n=1,010 (investor sample weighted to reflect U.S. population). Percentages for advisor responses may not total 100% due to rounding. Percentages for investor responses may not total 100% as respondents were not required to answer every question.
Sources: Vanguard, Advisor Proxy Voting Survey, March 2025, and Vanguard, Investor Proxy Voting Survey, February 2025.
FIGURE 3. One-third of advisors feel a proxy voting choice offer “significantly” or “slightly” increases the attractiveness of mutual funds versus nearly 60% for individual investors
Notes: Advisors n=722, Individual investors n=1,010 (investor sample weighted to reflect U.S. population). Percentages for advisor responses may not total 100% due to rounding. Percentages for investor responses may not total 100%, as respondents were not required to answer every question.
Sources: Vanguard, Advisor Proxy Voting Survey, March 2025, and Vanguard, Investor Proxy Voting Survey, February 2025.
These findings highlight that proxy voting choice can be a good way for advisors to enhance their value proposition, as it helps incorporate clients’ preferences into proxy voting decisions.
Benefits and motivations for adopting programs
Roughly 70% of advisors identified ways their businesses would benefit by adopting proxy voting choice programs. Close to half (47%) of advisors believe that doing so would add value by enabling their clients’ preferences to be represented in fund voting decisions.
FIGURE 4. Advisors cite representing client preferences, differentiating from other advisors, and connecting with clients as the biggest benefits of proxy voting choice programs
Notes: Advisors n=722. Survey respondents could choose up to three responses.
Source: Vanguard, Advisor Proxy Voting Survey, March 2025.
Despite different expectations of client interest in a proxy voting choice offer, advisors named ease of use, cost to implement, and client demand as the top three motivating factors to adopt these programs in their practices. As our individual investor proxy voting survey shows, demand is strong.
FIGURE 5. Ease of use, costs, and client demand are cited as the top reasons to consider offering a proxy choice option
Notes: Advisors n=722. Survey respondents could choose up to three responses.
Source: Vanguard, Advisor Proxy Voting Survey, March 2025.
Advisors and investors are aligned on certain governance topics
As in the individual investor survey, advisors were asked to select the governance topics they consider most important to their clients. Issuing dividends and executive pay were identified as the top two proxy voting matters by both advisors (60% and 49%, respectively) and individual investors (41% and 44%, respectively). However, only about one in five advisors identified approaches to social issues and environmental matters (21% and 20%, respectively) as proxy voting matters their clients would want to weigh in on, while a slightly higher percentage of individual investors (29% and 24%, respectively) viewed these matters as important.
FIGURE 6. Advisors and investors cite issuing dividends and executive pay as the most important proxy voting matters
Notes: Advisors: n=722, Individual investors n=1,010 (investor sample is weighted to reflect the U.S. population). Survey respondents could choose up to three responses.
Sources: Vanguard, Advisor Proxy Voting Survey, March 2025, and Vanguard, Investor Proxy Voting Survey, February 2025.
Financial advisors and their firms play a crucial role in helping clients select investments most appropriate for them. By representing their clients’ preferences in the proxy voting process, financial advisors can further enhance the value they provide.
Advisors can uniquely enable the voice of index fund investors
The different perspectives observed in our surveys highlight an opportunity for advisors to talk with their clients about voting choice, as individual investors have expressed strong interest in engaging in proxy voting choice programs.
Since 2023, Vanguard has been providing ways for millions of individual investors, advisors, and retirement plan sponsors to have greater control of how their participating equity index funds vote on proxy ballot items at the companies held in the funds. Vanguard Investor Choice provides investors with a simple, single policy election that helps direct Vanguard how to vote underlying corporate proxies for each participating investor’s pro rata share of an eligible fund or ETF. Please read more about Vanguard Investor Choice here so you can start the conversation with your clients.
1 Cogent conducted the study from March 10 to March 24, 2025, using its monthly representative sample of financial advisors as part of its Cogent Beat Advisor product. Survey participants are required to have an active book of business of at least $5 million and offer investment advice or planning services to individual investors on a fee or transactional basis.
The survey sample is obtained from the most recent Discovery Data databases of registered representatives and RIAs. Databases are analyzed to determine the current distribution of advisors by assets under management, channel, tenure, gender, and region. Quotas are then established to produce a final set of respondents that is truly reflective of the advisor population. As a final step, a weighting formula is applied based on the aforementioned demographic variables.
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