The Vanguard Group has moved to offer commission-free ETF trades for 46 of its exchange-traded funds (ETFs).
The changes became effective in late May and allow Vanguard’s brokerage clients to buy and sell Vanguard ETFs without paying any brokerage commissions.
Vanguard’s brokerage clients typically pay $2 or $7 to trade individual stocks and non-Vanguard ETFs. The actual trading commission paid depends on the size of a client’s brokerage account.
Investors with accounts $1 million or more are allowed 25 commission free trades per calendar year on stocks and non-Vanguard ETFs.
Vanguard now joins a chorus of competing fund companies that offer commission free ETF trading.
Charles Schwab allows commission free trading to its brokerage clients for Schwab ETFs. The San Francisco-based investment firm now manages around $1.19 billion in ETF assets.
In February, Fidelity Investments teamed up with BlackRock to offer commission free trades on 25 iShares ETFs.