Author Topic: Vanguard makes 1,800 EFTs commission-free  (Read 1478 times)

Vyse

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Vanguard makes 1,800 EFTs commission-free
« on: July 02, 2018, 01:50:29 PM »
https://investornews.vanguard/coming-in-august-the-largest-commission-free-etf-lineup-offered-to-investors/

Pretty neat, but the number is a little daunting to look through. Anyone have any specific EFTs they are excited about? Personally I've been looking for something that would partially insulate me from the US market (not for the majority of my funds, of course).

bacchi

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #1 on: July 02, 2018, 04:55:09 PM »
RSP would be nice and IJS is more value focused than VSS.

ILikeDividends

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #2 on: July 02, 2018, 09:57:56 PM »
I use SCHF (developed markets ex-US) and SCHE (emerging markets) for the international component of my AA.

These trade commission free at Schwab.  Don't know if anything comparable is offered by Vanguard, though I guess I'd be surprised if there wasn't.
« Last Edit: July 02, 2018, 10:11:02 PM by ILikeDividends »

Kalergie

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #3 on: July 03, 2018, 02:47:50 AM »
Does anyone know if Non-US people can make use of this at all?

koopafish

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #4 on: July 05, 2018, 12:57:41 PM »
Does this mean that these ETFs are now cheaper than VTSAX?

Radagast

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #5 on: July 06, 2018, 09:22:42 AM »
Sweet! I'm not so excited for Vanguard so much as I hope this will migrate to other providers.

Indexer

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #6 on: July 08, 2018, 01:43:17 PM »
I use SCHF (developed markets ex-US) and SCHE (emerging markets) for the international component of my AA.

These trade commission free at Schwab.  Don't know if anything comparable is offered by Vanguard, though I guess I'd be surprised if there wasn't.


VEA & VWO

10 year returns VS index.
VEA = +0.09%*
VWO = -0.11%

I prefer looking at the returns VS index instead of the expense ratio, because it accounts for 1. how well they are tracking the index, 2. the expense ratio, and 3. any securities lending income.

*VEA has actually outperformed it's index by 0.09% on average per year over the past 10 years. This is largely thanks to the securities lending income it brings in, and since Vanguard operates at cost they give this income back to the investors in the form of extra dividends.

Telecaster

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #7 on: July 08, 2018, 02:02:40 PM »
Does this mean that these ETFs are now cheaper than VTSAX?

It might.  You need a $10,000 minimum to buy VTSAX, after that of course, adding additional money is free. 

If VTI was commission free, it would make the barrier to entry lower, and thus lower less expensive. 

CorpRaider

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #8 on: July 09, 2018, 06:02:52 AM »
I use SCHF (developed markets ex-US) and SCHE (emerging markets) for the international component of my AA.

These trade commission free at Schwab.  Don't know if anything comparable is offered by Vanguard, though I guess I'd be surprised if there wasn't.


VEA & VWO

10 year returns VS index.
VEA = +0.09%*
VWO = -0.11%

I prefer looking at the returns VS index instead of the expense ratio, because it accounts for 1. how well they are tracking the index, 2. the expense ratio, and 3. any securities lending income.

*VEA has actually outperformed it's index by 0.09% on average per year over the past 10 years. This is largely thanks to the securities lending income it brings in, and since Vanguard operates at cost they give this income back to the investors in the form of extra dividends.

Do you have a preference on the time period you look at for this?  Seems to vary pretty widely.

MustacheAndaHalf

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Re: Vanguard makes 1,800 EFTs commission-free
« Reply #9 on: July 10, 2018, 04:21:18 AM »
Does this mean that these ETFs are now cheaper than VTSAX?
It might.  You need a $10,000 minimum to buy VTSAX, after that of course, adding additional money is free. 

If VTI was commission free, it would make the barrier to entry lower, and thus lower less expensive.
You can only buy VTSAX at Vanguard, and with a Vanguard account buying VTI is commission free already.  All Vanguard ETFs are already commission free, but next month Vanguard will be offering many other ETFs at no cost as well.

I think this means that ITOT, with 0.03% expense ratio and 3451 stocks, becomes a better value than VTI, with 0.04% expense ratio and 3610 stocks.

I like having access to more ETFs at $0/trade, but it's a strange move for Vanguard.  John Bogle didn't like ETFs because holders of ETFs tend to buy and sell them more often.  And he's probably even less enthusiastic about people doing that for free, which will encourage it.  Plus funds like ITOT will cost $0/trade, and being cheaper than VTI, will probably receive more investment dollars going forward.

Maybe VTI will learn to get a bit leaner, and lower it's expense ratio to 0.03%?