“Vanguard has led the industry in reducing the cost and complexity of investing for all investors for more than four decades. We’ve driven down the costs of funds. We’ve driven down the cost of advice. Now, we’re driving down the cost of investing in ETFs,” said Karin Risi, managing director of Vanguard Retail Investor Group.
What you can look forward to
In August, you’ll have access to almost all ETFs—from Vanguard and more than a hundred other companies—commission-free when you invest online. We’re excluding inverse and leveraged ETFs because their speculative nature runs counter to our investors’ focus on long-term success.
This lineup of nearly 1,800 commission-free ETFs joins the more than 2,500 no-transaction-fee mutual funds we already offer. And for investors using individual stocks and bonds to build diversified portfolios, we provide competitive commissions, with many investors paying as little as $2 for online stock trades.
“Vanguard wants to be the premier provider for long-term investors who want the flexibility to hold a wide array of low-cost funds and ETFs, coupled with the convenience of interacting with a single firm,” said Risi. “Investors will be able to assemble balanced, diversified portfolios from virtually the full universe of ETFs to meet their financial goals, add additional assets regularly, and periodically rebalance—all without paying a commission.”
But we know it’s about more than just access and low costs. We’ve made considerable enhancements to our brokerage platform over the past several years. And there are plans to invest even more to keep improving your online experience and trading capabilities.
Our focus on providing you with high-quality mutual funds and ETFs has never been stronger. Our settlement accounts are allocated to Vanguard Federal Money Market Fund (VMFXX), which currently yields 1.82%. That’s more than five times the average market rate.* And our Vanguard ETFs continue to offer superior performance—with 95% of them beating the returns of their peer-group averages over the past 10 years.** (Learn more about ETFs and why they’re gaining in popularity.)
This is what we do
If you’re already part of the Vanguard community, you know we’re different. As a client-owned company, we always put your interests first. Lowering costs to give you the best chance for investment success is nothing new. It’s simply what we do.
Watch for more details in August. In the meantime, here’s a list of Vanguard ETFs—all of which are already offered to you commission-free.
*Based on the highest published rates as of June 29, 2018, for settlement accounts at Charles Schwab, E*TRADE, Fidelity, and TD Ameritrade, which, with Vanguard, represent the five largest retail direct brokerage providers.
**For the 10-year period ended March 31, 2018, 30 of 32 Vanguard stock ETFs and 5 of 5 Vanguard bond ETFs—for a total of 35 of 37 Vanguard ETFs—outperformed their Lipper peer-group average. Results will vary for other time periods. Only ETFs with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View ETF performance
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.
You could lose money by investing in Vanguard Federal Money Market Fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Trading limits, fund expenses, and minimum investments may apply. See the Vanguard Brokerage Services commission and fee schedules for full details.
This offer excludes 401(k) participants using the Vanguard Brokerage Option account. Please reference the details of your specific plan for a current commission schedule.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Vanguard is client-owned. As a client-owner, you own the funds that own Vanguard.
U.S. Patent Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; and 8,417,623.