Vanguard says that it will now cost even less for some investors to trade its ETFs.
The fund giant announced Tuesday, May 4, that its brokerage clients can now trade any of its 46 ETFs without paying a commission.
They can also avoid commissions and pay less than before to trade non-Vanguard ETFs and stocks, depending on how many trades they make in a year and the amount of assets held in Vanguard ETFs and other funds.
Also, these commissions are the same for transactions conducted online at Vanguard.com or with the assistance of a Vanguard brokerage representative, the company says.
“For 35 years, Vanguard has been committed to reducing the cost of investing in mutual funds for our clients. Now, Vanguard is expanding our low-cost commitment to ETFs,” said Vanguard CEO Bill McNabb in a statement. “Importantly, Vanguard offers a greater choice of ETFs with expense ratios that are among the lowest in the industry.”
According to Lipper data from December 2009, the average expense ratio of Vanguard ETFs is 0.18% vs. the industry average of 0.52%, the company notes.