Pros
Vanguard's competitive advantage is to deliver the lowest possible expense ratios to it's clients. As it stands Vanguard delivers excellent value to clients whose intentions are to index and incur the lowest fees possible.
Cons
Rock bottom expense ratios come at a cost, mainly to the employees at Vanguard. Every penny that can be squeezed out of the companies expenses is clearly being done so. Out of date technology, and low pay for employees in comparison to competitors isn't a bug in Vanguard's strategy, it clearly is a feature. As companies compete to for rock bottom expense ratios, it becomes a race to the bottom where all profits must be invested into lowering expense ratios. This comes at a cost to employee morale. Clearly, Vanguard is a great place for clients to invest, working at Vanguard appears to be a different story. Invest more in your crew by providing more competitive pay and better opportunities to excel