Vanguard Group, the nation's second-largest mutual-fund company, has decided to warm up to full-service brokerages, an old rival of the company, in an attempt to reverse its falling behind in the race to grab investors for exchange-traded funds (ETFs), the Associated Press reports.

Known for its do-it-yourself, direct retail approach, Vanguard has now included ETFs in the portfolios recommended by full-service brokers, which in turn, target clients that Vanguard hasn't catered to before: Those who want someone else to manage their money.

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