The Vanguard Group made a name for itself by offering ulta-low-cost mutual funds. Now, the investment management company plans is distinguishing itself further by offering the largest selection of commission-free exchange-traded funds (ETFs).
These ETFs are available commission-free starting today. In all, they include nearly 1,800 ETFs that are currently trading on major exchanges.
While Vanguard’s own ETFs were already available commission-free, that status now also extends to the purchase of ETFs from competitors like BlackRock, Charles Schwab and others.
Karin Risi, managing director of Vanguard’s Retail Investor Group, notes in a company announcement today that ETFs have become increasingly popular in recent years. She says:
“”Vanguard’s expanded commission-free platform offers value, access, and convenience to the increasing number of investors turning to ETFs as their preferred investment vehicle. Ownership of Vanguard ETFs has quadrupled in the last five years and ETFs are being held by a broad range of investors—from millennials to retirees.”
To learn more about ETFs offered by or through Vanguard, visit the company’s ETF webpage.
Just note this news does not necessarily mean that you should change up your investments. Even Vanguard will tell you this. Rich Powers, head of ETF Product Management in Vanguard’s Portfolio Review Department, writes in a recent blog post:
“Our offer of almost 1,800 commission-free ETFs shouldn’t affect why you’re investing, how you feel about market volatility, or how much time you have before you need the money you invest. It also shouldn’t change whether ETFs are a good fit for your portfolio. Only you can decide how (or if) you can benefit from this change.”
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 our Facebook page.