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The Vanguard Group made a name for itself by offering ulta-low-cost traditional mutual funds. Now, the investment management company plans to distinguish itself further by offering the largest selection of commission-free exchange-traded funds (ETFs).
Vanguard this week that it will offer commission-free online transactions for “the vast majority of ETFs.” While Vanguard’s own ETFs already are available commission-free, that status soon will extend to the purchase of ETFs from competitors like BlackRock, Charles Schwab and many others.
Karin Risi, managing director of Vanguard’s Retail Investor Group, says in the announcement:
“We believe giving investors access to a broad choice of low-cost, broadly diversified, commission-free investments is good for investors and good for the asset management industry.”
Vanguard expects commission-free ETF transactions will be available starting in August.
In all, commission-free transactions will be available for nearly 1,800 ETFs — constituting what Vanguard says is “the largest suite of ETFs available to investors without commission.”
In an , Vanguard notes that more details about commission-free ETF transactions will be available next month. Meanwhile, you can check out the list of .
You will also find an on Vanguard’s site.
What is an ETF?
ETFs differ from traditional mutual funds in that they are traded on a stock exchange, as we explain in “Money Lingo You Need to Know for Financial Survival.”
Most ETFs are like index mutual funds in that they track the performance of a particular index, such as the S&P 500.
To learn more about ETFs — including how they allow folks to start investing without much money — check out “Ask Stacy: Should I Invest With ETFs?”
What’s your take on this news? Let us know what you think by commenting below or on .