Vanguard Group has hired a former executive at its rival, Fidelity Investments, to head a new advice and wealth management division beginning in January.

Vanguard is putting renewed emphasis on growing its financial advice business. On Thursday, the company said it has hired former Fidelity executive Joanna Rotenberg to lead a new advice and wealth management division which oversees more than $900 billion in assets.

Vanguard, one of the largest money managers in the world, is hiring Canadian executive Joanna Rotenberg to lead its newly created advice and wealth management division.

The asset management giant's new division, set to launch next year, comes as the firm announces other hires to shake up its leadership.

Another clue to Vanguard's commitment to wealth management is its CEO: Ramji, who took over from Tim Buckley in July, previously served as BlackRock 's head of U.S. wealth advisory and head of McKinsey's asset and wealth management practice.

Vanguard will establish a new Advice & Wealth management division aimed at enhancing current capabilities, to be led by former Fidelity executive Joanna Rotenberg, who will take the role in January and serve as a managing director and member of the firm’s senior leadership team.

Just like the Malvern, Pa.-based financial services conglomerate forced the larger asset management industry into a race to the bottom when it come to fees, Vanguard is reinforcing its wealth management business that currently charges less than a third of what most advisors do.

Money manager Vanguard said on Monday it will establish a new advice and wealth management division led by industry veteran Joanna Rotenberg. The move comes as leading asset managers expand their wealth management services to meet growing client demand in the backdrop of an increasingly complex and volatile investment landscape.

Joanna Rotenberg will join Vanguard in January 2025 as managing director and member of the company’s senior leadership team.