Author Topic: Is Vanguard much better than Schwab?  (Read 1136 times)

Aardvark

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Is Vanguard much better than Schwab?
« on: September 03, 2020, 05:47:43 PM »
MMM seems to have a preference for Vanguard.
I have an account with Schwab and can't see any significant reasons for switching to Vanguard.
Am I missing something?

seattlecyclone

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Re: Is Vanguard much better than Schwab?
« Reply #1 on: September 03, 2020, 06:19:32 PM »
Not really. Vanguard's ownership structure and long-time advocacy for index funds is great, but Schwab sells perfectly great index funds themselves. If you're happy with what you have there's no need to switch.

Aardvark

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Re: Is Vanguard much better than Schwab?
« Reply #2 on: September 03, 2020, 06:29:36 PM »
Great, that's good to know. Thanks for responding so quickly :)

MissPeach

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Re: Is Vanguard much better than Schwab?
« Reply #3 on: September 04, 2020, 09:45:26 AM »
I second that. I have had both and a few other accounts and Vanguard isn't my favorite. You can get many of the same funds or similar funds commission free now anyway so there's not the same need to go vanguard as there used to be.

robartsd

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Re: Is Vanguard much better than Schwab?
« Reply #4 on: September 04, 2020, 10:03:29 AM »
Vanguard has done much to promote low cost index fund investing and the ownership structure is a compelling argument, but others, including Schwab and Fidelity, have responded to the competition with similarly good low cost index fund investment options.

trollwithamustache

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Re: Is Vanguard much better than Schwab?
« Reply #5 on: September 04, 2020, 10:52:09 AM »
For the last few decades vanguard has been stomping the competition on fees, but Chuckles S figured out they had to compete and if you pick low cost funds you can match vanguard/VTSAX cost structure.

My mom uses them and my only complaint is they keep hitting her up to use their financial advisor, which annoys me.

Reynold

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Re: Is Vanguard much better than Schwab?
« Reply #6 on: September 17, 2020, 01:45:31 PM »
I have used Fidelity for decades, and just in the last year or so they started offering several "zero expense" index funds, almost certainly to keep business they were losing to Vanguard.  I'm sure there are some kind of expenses built in somewhere, but they seem low enough that I no longer had a reason to buy Vanguard index funds in my Fidelity account.  Similarly, the trading fees are low enough that it isn't worth it to me to change brokerages for the small amount of trading I do. 

If Schwab is doing similar things, I don't see a reason for you to switch. 

secondcor521

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Re: Is Vanguard much better than Schwab?
« Reply #7 on: September 17, 2020, 05:54:27 PM »
Agree with the rest of the replies.

Although I'm mostly at Vanguard, I started my kids at Schwab with their Roth IRAs because (a) Schwab would allow kids to open a Roth IRA with a dollar; Vanguard insisted on a minimum of $1K, and (b) Schwab has a local office where my kids could go in and talk with someone if they had an issue.  This latter point became helpful when my oldest messed up on an excess Roth contribution withdrawal and it needed sorting out with a person, documents, and pointing and conversing about it.

I was expecting them to accumulate some assets and then eventually move to Vanguard, but Schwab's costs and performance are competitive enough to where it's not worth the hassle.

One thing I would say is that Schwab's newsletters and advice tend to be more focused on active investing, so if you're more of a fan of passive investing, Vanguard might be a better cultural fit.

soccerluvof4

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Re: Is Vanguard much better than Schwab?
« Reply #8 on: September 18, 2020, 02:12:35 PM »
i'm in Vanguard but from being around here for awhile when this comes up its pretty much the same response. So yea Vanguard, Fidelity or Schwab for the most part you can accomplish the same thing.