Consider Upgrading to Vanguard’s Low Commission Admiral Stock
Vanguard continues to exacerbate ETF price wars by lowering the barrier to entry for low-fee Admiral- class stocks .
Vanguard Admiral shares are cheaper than Investor shares (about 15-71% less, according to Vanguard estimates), but require a higher minimum investment. This amount is currently reduced to $ 3,000 from $ 10,000 for 38 fund portfolios, including the Vanguard Total Stock Market Index and the Vanguard 500 Index Fund.This means savings for investors: Vanguard estimates that existing Investor shareholders will save about $ 71 million in commissions from transition.
As we discussed earlier, stock companies are strategically cutting prices on various investment products in an attempt to attract retail investors who are concerned that fees are eating away at their investments. Fidelity launched the first free index funds in August, and JPMorgan Chase recently announced a new investment platform called You Invest that will allow investors to trade 100 trades for free in the first year. In July, Vanguard announced that it would not charge ETF trading fees.
This is all good news for consumers who now have more and more affordable investment options.