Vanguard today announced that most exchange-traded funds (ETFs) available through its online brokerage platform – investor.vanguard.com – soon will be available without a commission. The change is scheduled to take effect in August, though an exact date has yet to be announced.
Roughly 1,800 of the 2,100 ETFs available on Vanguard’s platform will be commission-free, including ETFs from BlackRock’s (BLK) iShares division, Schwab (SCHW) and State Street’s (STT) State Street Global Advisors, which manages funds under the SPDR brand. Previously, the company offered only its 77 ETFs with no commission.
Vanguard has long been a price-setting pioneer. Its Vanguard 500 Index Fund (VFINX) set the stage for low-cost investing, and it continues to cut away, reducing expenses on 62 of its share classes in 2017 alone.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The latest move is a result of Vanguard’s desire to continue lowering costs for its clients, says Karin Risi, managing director of Vanguard’s Retail Investor Group.
“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,” Risi says.
There’s no catch, and the ETFs come with no hidden fees. You’ll be able to buy and trade ETFs as frequently as you like without incurring a charge, Risi says.
As a result, Vanguard will surpass its competitors to become the brokerage with the most commission-free ETFs.
Fidelity currently offers 95 commission-free ETFs, while Schwab offers more than 200 ETFs with no commission. TD Ameritrade (AMTD), meanwhile, offers more than 300 ETFs without a commission.
The roughly 300 ETFs that Vanguard won’t make commission-free are those that are highly speculative and misunderstood, such as inverse and leveraged products.
Vanguard introduced its first ETF in 2001 and will add two more to its lineup in September. Both will be environmental, social and governance (ESG) ETFs.
-
5 Steps to Turn Your Nest Egg into a Retirement PaycheckSponsored Sponsored Content by Sensible Money
-
What’s Happening With Trump, Elon, Tesla, and the EV Tax Credit?Tax Credits There's a lot of chatter about the President-elect's plans to eliminate the electric vehicle tax credit. Here's what you need to know.
-
Stock Market Today: Tech Leads Stocks to Broad-Based GainsRisk appetite came back with a vengeance as oil and bonds took a breather.
-
Microsoft, BlackRock Team Up to Invest in AI Infrastructure: What to KnowMicrosoft and BlackRock are joining forces to invest up to $100 billion in AI infrastructure. Here's what you need to know.
-
Stock Market Today: Stocks Close Higher Ahead of Powell SpeechThe main indexes kicked off the second half with a win thanks to solid gains in several mega-cap stocks.
-
What BlackRock's Acquisition of Preqin Means for InvestorsThe $3.2 billion all-cash deal will expand BlackRock's footprint in the fast-growing private markets data segment. Here's what you need to know.
-
Stock Market Today: Stocks Extend Longest Winning Streak in YearsThe main indexes lost momentum as the session wore on, but two out of three hung on for a win.
-
SEC Approves Spot Bitcoin ETFs: What That Means for InvestorsSpot bitcoin ETFs were granted regulatory approval on January 10, allowing investors easier access to the cryptocurrency.
-
The 5 Best Actively Managed Fidelity Funds to Buy Nowmutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
