Vanguard Group
World's second-largest asset manager ($8+ trillion AUM) with significant holdings in defence contractors and companies supplying Israel. Passive index funds create automatic exposure to weapons manufacturers.
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Withdrew from Net Zero Asset Managers initiative in December 2022, facing criticism from climate and human rights advocates. Holdings in defence contractors supplying weapons used in Gaza operations create association with documented civilian casualties.
Growing divestment pressure from universities, pension funds, and religious institutions targeting Vanguard funds with defence contractor exposure. Student encampment movements specifically demanded divestment from Vanguard-managed funds.
Potential fiduciary duty challenges as ESG considerations become legally mandated in some jurisdictions. ICJ Advisory Opinion (July 2024) creates legal questions about investments facilitating unlawful occupation.
Passive index fund structure creates automatic exposure to companies facing human rights controversies. Client pressure for exclusionary funds growing.
Product Alternatives
Ethical replacements tagged by what matters to you: cost, quality, ethics, sustainability, or local sourcing. Make the switch today.
Ethical Investment Funds
Investment options with human rights and weapons exclusion screens
Pioneer in sustainable investing with weapons exclusion policies
Screens out weapons manufacturers and human rights violators
ESG-focused funds with responsible investment criteria
Part of Morgan Stanley, applies human rights screens
Comparison Legend
Strategic Analysis
In-depth assessment of the company's position, vulnerabilities, and recommended approaches for effective engagement.
High severity, lower vulnerability — requires long-term divestment pressure
Learn about our methodology — companies are categorised based on severity (harm potential) vs strategic vulnerability (campaign leverage).
Why do these scores change?
Unlike static boycott lists, our targeting model is dynamic. This company's position on the matrix is re-evaluated continually as we verify new contracts, divestments, or policy changes. Your reporting directly impacts this score.
Strategic Analysis
Vanguard Group represents a critical leverage point in the financial infrastructure supporting companies with ties to Israeli military operations. As the world's second-largest asset manager with over $8 trillion in assets under management, Vanguard's passive index funds create automatic exposure to defence contractors and settlement-linked companies. The company's December 2022 withdrawal from the Net Zero Asset Managers initiative signalled a retreat from ESG commitments, raising questions about the firm's approach to human rights considerations in investment decisions.
Key Leverage Points
- Institutional Client Pressure: Pension funds, university endowments, and religious institutions can demand Vanguard offer exclusionary fund options or divest from complicit companies. Student encampment movements have specifically targeted Vanguard funds.
- Fiduciary Duty Evolution: As ESG considerations become legally mandated in some jurisdictions, Vanguard faces potential fiduciary duty challenges for failing to assess human rights risks in portfolio companies.
- New Leadership Opportunity: CEO Salim Ramji joined in July 2024 from BlackRock's ETF business. New leadership creates opportunity to push for policy changes on human rights due diligence and exclusionary fund options.
- Competitive Pressure: Competitors offering human rights-screened funds create market pressure for Vanguard to offer similar products or lose ESG-conscious clients.
Evidence Summary
Vanguard holds significant equity stakes in major defence contractors including Lockheed Martin, RTX Corporation (Raytheon), Northrop Grumman, and General Dynamics - all of which supply weapons systems documented in use during Israeli military operations. Through its Total Stock Market Index Fund and similar products, Vanguard creates automatic exposure to these companies for millions of retail and institutional investors. The company's passive investment methodology means exclusions require explicit policy decisions, creating clear advocacy targets.
Engagement Strategy
Focus campaigns on institutional clients with the power to demand changes from Vanguard, including university endowments, pension funds, and religious institutions. Push for creation of exclusionary fund options that screen out weapons manufacturers and companies listed in the UN OHCHR database. Engage with the new CEO Salim Ramji on implementing human rights due diligence. Support shareholder advocacy at companies within Vanguard portfolios to create internal pressure for policy changes. Coordinate with student divestment movements targeting university endowments invested in Vanguard funds.
Evidence & Sources
Verified sources including NGO reports, regulatory filings, and primary documents. Use these to substantiate your correspondence.
Analysis finds Vanguard has 4.3% invested in military weapons across 104 funds, including $87.6 billion in weapons stocks through the Total Stock Market Index Fund alone. Investments include nuclear weapons and controversial weapons manufacturers.
Open sourceWorld's largest sovereign wealth fund ($1.9 trillion) divests from 11 Israeli companies and terminates Israeli external manager contracts, setting precedent that contrasts with Vanguard's continued investments. Fund CEO states they 'expect to divest from more companies.'
Open sourceUN Special Rapporteur Francesca Albanese's report identifies Vanguard as a main investor behind companies linked to Israel's military operations, with the second-largest stakes in Lockheed Martin (9.2%) and Elbit Systems (2%), and largest stakes in Caterpillar, Chevron, and Palantir.
Open sourceInternational Court of Justice determines Israel's continued presence in occupied Palestinian territory is unlawful. Creates legal questions for investors maintaining positions in companies facilitating the occupation.
Open sourceBusiness & Human Rights Resource Centre documents that Vanguard did not respond to invitation to address UN experts' call to cease arms transfers to Israel, highlighting failure to engage with human rights risks.
Open sourceUniversity encampment movements across US specifically demand divestment from Vanguard-managed funds holding defence contractor stocks.
Open sourceDocuments Vanguard's significant holdings in defence contractors supplying weapons to Israel, including stake positions in major arms manufacturers.
Open sourceVanguard becomes first major asset manager to exit climate coalition, signalling retreat from ESG commitments that had included human rights considerations.
Open sourceUpdates & Milestones
- Norway Fund Divests; Vanguard Maintains Holdings
Norway's $1.9 trillion sovereign wealth fund divests from 11 Israeli companies and terminates Israeli external manager contracts. Vanguard maintains its positions, highlighting divergent approaches among major institutional investors.
- Named in UN Special Rapporteur Report
UN Special Rapporteur Francesca Albanese's report 'From Economy of Occupation to Economy of Genocide' identifies Vanguard as a main investor behind companies linked to Israel's genocidal campaign, including largest stakes in Caterpillar, Chevron, Palantir, and Elbit Systems.
- New CEO Appointed; No Response to UN Arms Call
Salim Ramji joins as CEO from BlackRock. Separately, Vanguard fails to respond to Business & Human Rights Resource Centre invitation to address UN experts' call to cease arms transfers to Israel.
- Student Encampment Movement
University campus protests specifically demand divestment from Vanguard funds holding defence contractor stocks linked to Israeli military operations.
- ICJ Provisional Measures
International Court of Justice finds Israel faces 'plausible' genocide case, raising legal questions about investments in companies supplying Israeli military.
- Net Zero Asset Managers Withdrawal
Vanguard withdraws from Net Zero Asset Managers initiative, becoming first major asset manager to exit the climate coalition.
- Vanguard Founded
John Bogle founds Vanguard Group, pioneering low-cost index investing that would grow to become the world's second-largest asset manager.