Vanguard Expands Commission-Free ETFs in August
Vanguard is making one of the biggest dreams of investors come true: to trade commission-free on most of its ETF options.
The investment giant will provide investors with access to nearly 1,800 different ETFs without commission starting in August through its online brokerage service, becoming the first firm to do so. The company has already offered its own Vanguard ETFs to investors without commission, but will now expand the deal to cover the “vast majority” of funds it holds, excluding leverage or inverse ETFs.
ETFs, or exchange-traded funds, are a collection of securities (stocks, bonds, etc.) traded on a stock exchange. They are a flexible way to diversify your portfolio and tend to be cheaper than mutual funds, making them an ideal tool for many investors.
Typically, you will incur the cost of trading ETFs, which is what Vanguard is targeting here to attract more investors. Schwab, Fidelity, E-Trade and TD Ameritrade offer commission-free trading on ETF subsets, but Vanguard will be the first to expand to such a wide range of funds.
It’s a boon for investors, but take Vanguard founder Jack Bogle’s word for it: Despite the price drops, you don’t want to go crazy with your trades .