More details on Vanguard’s commission-free ETFs

Thanks to Schwab and Fidelity, Vanguard had no choice but to offer commission free trades! Not exactly as free as Schwab or Fidelity…

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!

• Don't Spend Money to Make Money. Earn $125 in 24 hrs. Guaranteed. Free. Interesting Information to Keep in Mind
• TaylorMade Golf 2009 Burner Driver (Regular,10.5�,Right Hand,RE*AX SuperFast 49 Graphite)
• I Bought a Mutual Fund...