Here’s the fine print:
- If you have a balance of less than $50,000, you will incur an annual fee of $20
- This amount must be invested in Vanguard funds or ETFs. If you have non-Vanguard securities in a Vanguard account, those will not count toward the $50,000 minimum
- Commissions to purchase non-Vanguard securities have been reduced to $7 for the first 25 trades, $20 thereafter
- If you purchase the same ETF for more than 25 times in 12 months, Vanguard may restrict you from purchasing that ETF for 60 days
- If you are a Vanguard customer but have Vanguard funds and wish to convert them to equivalent ETFs, you can do so at no extra charge. Previously there was a $50 charge. This has been removed
Despite the fine print, I still think this is a good deal. Fidelity’s commission free deal for 25 selected iShares is only for 3 years. It is anyone’s guess if Fidelity’ll start charging after 3 years. Schwab has only 8 ETFs as of this post. Vanguard offers 46 ETFs with some of the lowest expense ratios.
Hope Vanguard doesn’t pull a bait-and-switch!