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!

3 thoughts on “More details on Vanguard’s commission-free ETFs

  1. More details on Vanguard's commission-free ETFs #RTW

  2. I think the free trades are here to stay in ETF’s.
    .-= Daddy Paul´s last blog ..The low risk portfolio =-.

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