Vanguard Group

Category: Challenging

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.

HQ: USA Website Updated: 9 Jan 2026

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Decision-Maker Directory

Key individuals with influence over corporate partnerships and procurement decisions. Direct your correspondence to the most relevant role.

Salim Ramji
Chief Executive Officer
Became CEO in July 2024, joining from BlackRock where he led the $3 trillion ETF business. First external CEO hire in Vanguard's history.
Public contact: Via vanguard.com/corporate-portal
Chris Tsakalakis
Managing Director, Institutional Investor Group
Leads relationships with pension funds, endowments, and institutional clients globally.
Public contact: Via institutional services
John James
Chief Investment Officer
Oversees investment strategy and fund management across all Vanguard products.
Public contact: Via investor relations

Material Risk Framing

Frame your message around business risks. These talking points resonate with corporate stakeholders and institutional investors.

Reputational

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.

Financial

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.

Legal

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.

Operational

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

Pax World Funds

US

Pioneer in sustainable investing with weapons exclusion policies

Screens out weapons manufacturers and human rights violators

More Ethical Direct Match

Calvert Funds

US

ESG-focused funds with responsible investment criteria

Part of Morgan Stanley, applies human rights screens

More Ethical Direct Match

Triodos Investment Management

Europe

European sustainable investment manager with strict exclusion policies

Excludes weapons and controversial arms

More Ethical

Comparison Legend

Direct MatchClear substitute for the same product/service
CheaperLower cost option
Better QualityProven superior performance/reliability
More EthicalAvoids human rights, labour, or environmental harm
SustainableStronger eco credentials (materials, energy, lifecycle)
Local SupplierSupports domestic/regional economy instead of Israel
Palestine-FriendlyExplicitly supportive or aligned with justice for Palestine

Strategic Analysis

In-depth assessment of the company's position, vulnerabilities, and recommended approaches for effective engagement.

CHALLENGING PRIORITY TARGET MONITORING TARGET Strategic Vulnerability → Severity → Severity: 8.0, Vulnerability: 5.0

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.

NGO
2025-09-30
Weapon Free Funds: Vanguard Receives F Grade for Military Investments

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 source
News
2025-08-11
Norway Sovereign Wealth Fund Divests from Israeli Companies

World'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 source
Report
2025-06-30
UN Special Rapporteur Report: 'From Economy of Occupation to Economy of Genocide'

UN 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 source
Filing
2024-07-19
ICJ Advisory Opinion: Israeli Occupation Unlawful

International 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 source
NGO
2024-07-03
Vanguard Fails to Respond to UN Experts' Call on Arms Transfers

Business & 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 source
Report
2024-05-01
Student Divestment Demands Target Vanguard Funds

University encampment movements across US specifically demand divestment from Vanguard-managed funds holding defence contractor stocks.

Open source
NGO
2024-01-01
AFSC Investigate: Vanguard Holdings Analysis

Documents Vanguard's significant holdings in defence contractors supplying weapons to Israel, including stake positions in major arms manufacturers.

Open source
News
2022-12-07
Vanguard Withdraws from Net Zero Asset Managers Initiative

Vanguard becomes first major asset manager to exit climate coalition, signalling retreat from ESG commitments that had included human rights considerations.

Open source

Updates & Milestones

  1. 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.

  2. 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.

  3. 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.

  4. Student Encampment Movement

    University campus protests specifically demand divestment from Vanguard funds holding defence contractor stocks linked to Israeli military operations.

  5. ICJ Provisional Measures

    International Court of Justice finds Israel faces 'plausible' genocide case, raising legal questions about investments in companies supplying Israeli military.

  6. Net Zero Asset Managers Withdrawal

    Vanguard withdraws from Net Zero Asset Managers initiative, becoming first major asset manager to exit the climate coalition.

  7. Vanguard Founded

    John Bogle founds Vanguard Group, pioneering low-cost index investing that would grow to become the world's second-largest asset manager.

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