Buckley, 48, has been appointed president and director of the passive fund giant ahead of him stepping into McNabb’s shoes on January 1 next year.
He was chief investment officer at the firm from 2013 and a member of the senior leadership team from 2001.
McNabb, CEO since 2008, will remain as chairman of the board while Greg Davis, currently global head of the firm’s fixed income group, will become CIO with responsibility for some $3.8trn managed across more than 300 mutual funds and ETFs.
McNabb said: “As the firm continues to grow, evolve and expand globally, it is the right time for a new leader and the board is unanimous in its belief that Tim Buckley is the ideal next chief executive for Vanguard.
“I have worked alongside Tim for many years and he brings a strong passion for serving Vanguard clients and crew, a global mindset, and significant leadership experience in all facets of our operations.”
Buckley has been a long-standing member of Vanguard’s global investment committee with responsibility for its in-house equity and fixed income management as well as 27 external investment advisory firms employed by Vanguard.
“Vanguard’s mutual structure and client-focused culture serve as the foundation for everything we do, and I am honored to lead this great organisation into its next chapter,” said Buckley.
“Thanks to Bill’s strong leadership over the past 10 years, Vanguard is well-positioned to continue helping clients achieve investment success. I look forward to continuing to work closely with Bill over the next six months as I transition to my new role.”