Yes, you can purchase Vanguard mutual funds and exchange-traded funds (ETFs) through a brokerage account at Charles Schwab. This guide explores the details of buying Vanguard funds on Schwab, including transaction fees, expenses, and performance.
Buying Vanguard Funds on Charles Schwab:
- Mutual Funds: Schwab offers a wide selection of Vanguard mutual funds, including popular options like the Vanguard Balanced Index Fund (VBIAX), Vanguard Emerging Markets Bond Fund (VEMBX), and Vanguard Dividend Appreciation Index Fund (VDADX). You can purchase these funds through Schwab’s website or mobile app.
- ETFs: Schwab also offers a variety of Vanguard ETFs, such as the Vanguard Health Care Fund (VHT). These ETFs trade intra-day with market prices, unlike mutual funds that trade once a day at their net asset value (NAV).
Schwab Transaction Fee for Vanguard Funds:
- Mutual Funds: Schwab charges a $74.95 transaction fee for each purchase of a Vanguard mutual fund, regardless of whether the order is placed online, through Schwab’s automated phone service, or with a live representative.
- ETFs: There is no commission for purchasing Vanguard ETFs on Schwab.
Minimum Purchase Amounts:
- Mutual Funds: The minimum initial purchase amount for Vanguard mutual funds on Schwab is $3,000. Subsequent purchases require a minimum of $1.
- ETFs: There is no minimum purchase amount for Vanguard ETFs on Schwab, other than the cost of one share.
Finding Vanguard Funds on Schwab:
- Website: Navigate to the “Research” tab on Schwab’s website and select either “ETFs” or “Mutual Funds” from the drop-down menu. Then, use the appropriate screener to filter for Vanguard funds.
- Mobile App: The Schwab mobile app also allows you to search for Vanguard funds using the “Research” tab.
Additional Considerations:
- Schwab does not allow automatic systematic investments or withdrawals into Vanguard mutual funds.
- Vanguard funds typically have low expense ratios, which can benefit long-term investors.
- Schwab offers a variety of research tools and educational resources to help investors make informed decisions about Vanguard funds.
While Schwab charges a transaction fee for purchasing Vanguard mutual funds it offers a wide selection of these funds and ETFs, making it a viable option for investors seeking to diversify their portfolios with Vanguard products. Remember to consider the transaction fees and minimum purchase amounts when making your decision.
What are mutual fund fees?
After locating the desired mutual fund, carefully review the expenses and fees. Remember that how you intend to use the fund to achieve your investing objectives will determine how important fees and costs are in relation to each other.
- Operating Expense Ratio (OER): The annual percentage of fund assets deducted to pay for fund operations is known as the OER. For instance, if your $10,000 is invested in a mutual fund with a 0 At a 50% expense ratio, you are shelling out roughly $50,000 annually for expenses. Where can I find the information? Research on Schwab mutual funds >Schwab mutual fund prospectus
- Load: When you purchase or sell shares in specific load-based mutual funds, some fund companies charge a load, which is a one-time commission meant to pay the broker for the transaction. Where can I find the information? Research on Schwab mutual funds > Schwab mutual fund prospectus
- Transaction fee: When you purchase or sell mutual fund shares, certain brokerages may impose this trading fee. Where to look it up?View our transaction fees > .
Schwab vs Fidelity vs Vanguard (DETAILED REVIEW)
FAQ
Can I buy Vanguard funds through Schwab?
Does Schwab charge to buy mutual funds?
Are Vanguard ETFs commission free at Schwab?
Should I switch from Schwab to Vanguard?
How much does Schwab charge for Vanguard mutual funds?
Every Vanguard mutual fund purchased through Schwab is subject to a $74.95 transaction fee. This charge is applied to every purchase submitted online or through Schwab’s automated phone service. Using a live rep over the phone tacks on an additional $25. There is a $3,000 minimum initial purchase amount and a $1 subsequent purchase amount.
Are Vanguard & Schwab the same company?
Schwab and Vanguard are both Gen Xers. Vanguard is slightly younger, though: Schwab was founded in 1971, four years before Vanguard. Schwab charges no fees for brokerage accounts or IRAs. Meanwhile, Vanguard charges a $25 annual fee for each brokerage and mutual-fund-only account. It also charges fees for IRAs and 401 (k) plans.
Do Vanguard funds charge fees?
Very few Vanguard funds charge fees when you buy and sell shares. The fees are designed to help those funds cover higher transaction costs and protect long-term investors by discouraging short-term, speculative trading. Fees vary from 0.25% to 1.00% of the amount of the transaction. See which funds charge purchase & redemption fees
Does Schwab charge a brokerage fee?
Schwab charges no fees for brokerage accounts or IRAs. Meanwhile, Vanguard charges a $25 annual fee for each brokerage and mutual-fund-only account. It also charges fees for IRAs and 401 (k) plans. Vanguard does waive fees for customers who meet certain asset thresholds.