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Vanguard Reduces Trading & ETF Transaction Fees

Posted By Jim On 05/05/2010 @ 12:03 pm In NEWS | 11 Comments

Vanguard recently announced a reduction in their fees [3]. For most investors, those with less than $50,000 in their account, their first 25 stock trades each year will cost only $7, subsequent trades are $20. If you have $50-$500k, all trades are $7. $500k- $1M, all trades are $2. If you have over a million, your first 25 trades each year are free, $2 for subsequent trades.

The bigger news is with Vanguard ETFs, all investors now get to buy and sell Vanguard ETFs for free. For Standard accounts (<$50k assets), there is a $20 account service fee. That's waived for those with $50k+ of assets with Vanguard.

This makes Vanguard ETFs very attractive people with Vanguard brokerage accounts. They already have really low expense ratios and when you make them free to buy and sell, it’s almost a no brainer. The Vanguard Total Stock Market ETF [4] (VTI [5]) has an expense ratio that matches its mutual fund Admiral Shares version [6] (to qualify for Admiral Shares of a Vanguard fund, you need $100,000+ invested in that fund).

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[2] Email: mailto:?subject=http://www.bargaineering.com/articles/vanguard-reduces-trading-etf-transaction-fees.html

[3] reduction in their fees: https://personal.vanguard.com/us/whatweoffer/stocksbondscds/feescommissions

[4] Vanguard Total Stock Market ETF: https://personal.vanguard.com/us/funds/snapshot?FundId=0970&FundIntExt=INT#hist=tab%3A1

[5] VTI: http://www.google.com/finance?client=ob&q=NYSE:VTI

[6] Admiral Shares version: https://personal.vanguard.com/us/funds/snapshot?FundId=0585&FundIntExt=INT#hist=tab%3A1

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