Author Topic: Vanguard mutual fund vs brokerage account  (Read 1030 times)

KES

  • 5 O'Clock Shadow
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Vanguard mutual fund vs brokerage account
« on: October 17, 2017, 01:16:09 PM »
I got this email from Vanguard: "We recently invited you to transition your Vanguard mutual fund account to the Vanguard Brokerage Account".
Does anybody know what this means or what the difference is between the two?
Thanks!

MDM

  • Walrus Stache
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Acastus

  • Bristles
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Re: Vanguard mutual fund vs brokerage account
« Reply #2 on: October 19, 2017, 08:50:25 AM »
They are inviting you to invest in ETFs instead of mutual funds. ETFs can be more tax efficient, and if you want to time the market or day trade, you can trade ETFs during the day, not just at end of day. The disadvantage of ETFs is you need to pay a commission with each investment. At Vanguard, the amount is small, and lower expense ratios can balance this out.

Hint - savvy investors do not time the market.