Vanguard Mutual Funds offer commission-free online transactions on nearly 1,800 ETFs (Exchange-Traded Funds), as announced in early July 2018. Vanguard states that it has not included inverse and leveraged ETFs because of their highly conjectural nature.
Vanguard has launched the biggest set of commission-free ETFs to investors. Vanguard funds now give commission-free online transactions on almost 90 percent of the total of about 2,000 ETFs presently trading on the major exchanges.
The expanded commission-free platform of Vanguard gives “value, access, and convenience” to the growing number of investors considering ETFs as their preferred investment choice, said Karin Risi, MD of Vanguard’s Retail Investor Group.
“Ownership of Vanguard ETFs has quadrupled in the last five years and ETFs are being held by a broad range of investors—from millennials to retirees,” Risi added.
While few financial firms are limiting access to leading ETFs, Vanguard Mutual Funds offer of commission-free online transactions for ETFs is very useful.
Vanguard’s expanded commission-free platform will help in reducing initial investment costs for ETF, as well as in implementing strategies like rebalancing, dollar-cost averaging, and harvesting losses for tax benefits.
Although ETFs provides the flexibility of buying and selling them throughout the day, Vanguard strictly warns investors from trading overly and chasing hot performers.
Vanguard’s objective or aim is to offer additional access and flexibility to its customers, and not to prompt or encourage counter-productive, excessive trading activity, said Risi.
A present, Vanguard Brokerage clients can access most of the ETFs from providers such as Schwab, BlackRock, and SSgA, without any additional costs for buying or selling.
The clients also have the chance to invest in over 2,500 non-Vanguard mutual fund schemes and buy individual stocks and bonds without any transaction fees. The investors are required to pay between 0 USD to 2 USD for online equity transactions.
Risi also feels encouraged that the customers are adhering investment principles of Vanguard Mutual Funds when buying and holding Exchange-Traded Funds as part of balanced, long-term portfolios, according to etfexpress.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]