The chief executive of Vanguard, the world's second-largest asset manager, is to step down from his position after nine years at the helm of a company that has upended the industry with its low-cost investment mantra.

Bill McNabb, who joined Vanguard in 1986 and worked his way up to become CEO 22 years later, will relinquish his position at the end of the year but retain the role of chairman.