A low cost option for a long term investment
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Index investing, which is putting your money in index funds, got its start thanks to Vanguard.
“Jack” Bogle, founder of the brokerage, created the first index fund, which offers the ability to invest in a basket of stocks and / or bonds with low fees and minimal risk.
So it’s no surprise that Vanguard is known for its low cost investment options. Account holders pay no commissions for trading stocks and ETFs, and they avoid paying transaction fees for over 3,000 mutual funds. Investors can obtain advice through the robo-advisor service Vanguard Digital Advisor®, which automatically manages your investment portfolio.
Below, Select reviews Vanguard’s offerings to give you details of investment options, features, and fees so you can decide if it’s right for your needs.
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Information on Vanguard was independently collected by Select and was not reviewed or provided by Vanguard prior to publication.
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle chosen. No minimum to open a Vanguard account, but a minimum deposit of $ 1,000 to invest in many retirement funds; robo-advisor Vanguard Digital Advisor® requires a minimum of $ 3,000 to register
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Costs
The fees may vary depending on the chosen investment vehicle. No commission fees for equity and ETF transactions; no transaction fees for over 3,000 mutual funds; $ 20 annual service fee for IRAs and brokerage accounts, unless you opt for paperless statements; robo-advisor Vanguard Digital Advisor® charges up to 0.20% advisory fee (after 90 days)
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Premium
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Investment vehicles
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Investment options
Stocks, bonds, mutual funds, CDs, ETFs and options
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Educational resources
Retirement planning tools
Advantages
- No commission fees for stock and ETF transactions
- No transaction fees for over 3,000 mutual funds
- One of the biggest ETF and mutual fund offerings
- Robo-advisor Vanguard Digital Advisor® available for 90-day free trial with no advisory fees
- Vanguard 529 plan helps you save for college right from the start
- Excellent customer service
- Offers retirement planning tools
- Customers have access to GetHuman, a dedicated human-to-human customer service website, with features like speaking to a Vanguard representative, current wait time notification, reminders to call when the call center opens , plus pro tips and conversations. points for customers
- Vanguard Personal Advisor Services® available for personalized support
The inconvenients
- Many retirement funds require $ 1,000 to invest
- Annual service fee of $ 20 for IRAs and brokerage accounts (investors can waive these fees by opting for paperless statements)
- Robo-advisor Vanguard Digital Advisor® requires a minimum of $ 3,000 to sign up and charges up to 0.20% in advisory fees (after 90 days)
- Basic trading platform only
- No research tools and robust data
Investment options
Characteristics
Vanguard is a solid choice for its commission-free equity and ETF trading, as well as its thousands of no-transaction-fee mutual funds.
Vanguard doesn’t have a lot of tools for those who are more active traders or interested in short-term trading, making it a stable option for investors who want to buy and hold funds, stocks or bonds at long term. A platform like Robinhood may be best for those looking to trade or buy options (which does not charge any fees for options trading).
User reviews make it seem easier to manage your Vanguard investments on the go if you are an Apple user. The Vanguard app is available for free download in the App Store (for iOS), where it has 4.7 / 5 stars, and on Google Play (for Android), where it has a low 1.9 / 5 stars at time of this article. was written.
Costs
Minimum deposit and balance requirements vary depending on the Vanguard account you select.
While there is no minimum to open a Vanguard account, investors must make a minimum deposit of $ 1,000 to invest in many retirement funds. Commission-free transactions can be done with stocks and ETFs, and there are no transaction fees for over 3,000 mutual funds. The expense ratios for ETFs and mutual funds are among the lowest in the market, averaging 0.10%, well below the industry average.
The Vanguard Digital Advisor robot-advisor service requires a minimum deposit of $ 3,000 to enroll. There is also an annual advisory fee of up to 0.20% (although this is a fee waiver for the first 90 days after opening the account) to use the automated investment platform. .
And, finally, while there is an annual service fee of $ 20 for Vanguard IRAs and brokerage accounts, you can easily waive this if you opt for paperless statements.
At the end of the line
If you are interested in the robo-advisor element of Vanguard, you might want to check out alternatives like SoFi Invest first, whose automated investment platform comes with no account management fees and requirements. minimal. It offers a wide range of low cost ETFs and will automatically rebalance your portfolio on a quarterly basis. Read our full review of SoFi Invest.
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Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.