VALLEY FORGE, PA — Vanguard has reported a surge in participation in its Investor Choice proxy voting pilot, with more than 82,000 investors engaging during the 2025 proxy season, more than doubling the prior year’s total. The findings underscore growing investor appetite for greater influence over corporate governance at companies held within Vanguard funds.
Launched in early 2023, Investor Choice allows individual investors to direct how shares held in participating Vanguard equity index funds are voted. The program, now covering 12 funds with more than $1 trillion in assets, has become the largest initiative of its kind.
“For more than 50 years, Vanguard has made investing more accessible for everyday investors,” said John Galloway, Global Head of Investment Stewardship. “Investor Choice carries forward that legacy by ensuring that investors and their fiduciaries can more directly align their portfolios with their goals and preferences.”
Key results from the 2025 season highlight shifting preferences and broader engagement:
- Diverse Policy Selections: No single proxy voting policy was selected by more than 35% of participants, reflecting a wide dispersion of investor perspectives.
- Plan Sponsor Growth: Retirement plan sponsors representing more than 100,000 participants enrolled, extending the program’s reach into workplace savings plans.
- Shift Away from Vanguard Policy: Nearly two-thirds of investors (65%) opted for policies other than the Vanguard-advised default, compared with 57% last year.
- ESG Divide: Selection of the Glass Lewis ESG policy fell to 17.6%, its lowest level since the program began. However, investors in the Vanguard ESG U.S. Stock ETF chose it at a rate of 80%, far above the overall average.
- Demographic Differences: Younger investors were more than twice as likely as older participants to support the ESG option (42% vs. 17%), and women selected it at higher rates (28%) than men (16%). Conversely, men were nearly twice as likely to favor the Egan-Jones Wealth-Focused policy.
David Reiner, Head of Investor Choice, emphasized the program’s role in strengthening governance. “Investor Choice is built on the belief that investors should have a say in how their fund holdings are voted and that access to diverse perspectives supports a healthy corporate governance ecosystem,” he said.
The results suggest a growing generational and gender divide on ESG-related issues, while also highlighting the demand for broader choice in proxy voting. Vanguard said it plans to continue expanding the program, with the goal of eventually making Investor Choice available across all U.S. equity index funds.
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