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Advantage to use Vanguard for Vanguard index funds?
11-20-2019, 02:25 PM
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#1
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Full time employment: Posting here.
Join Date: Sep 2017
Posts: 816
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Advantage to use Vanguard for Vanguard index funds?
I want to move retirement funds into either Vanguard, Schwab, or Fidelity.
Schwab and Fidelity have offices I can drive to which I like.
Anyway, I am looking to stick with either a 3-fund or 4-fund portfolio of Vanguard index funds as proposed in Boglehead forums. I am not an active investor and think I'd just re-allocate once a year if possible.
The VG funds are also available Through Fido and Schwab.
So, given I stick with just Vanguard funds, is there a downside to using Fidelity or Schwab? What is the advantage of working directly with Vanguard?
Thx
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11-20-2019, 02:33 PM
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#2
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Full time employment: Posting here.
Join Date: Jun 2018
Posts: 928
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Check the trade fees for buying Vanguard funds via Fidelity. When I checked they wanted $75 a trade. If I recall, to get my brokerage business they were willing to waive it for the life of my account. Not a big deal if you are buy and hold. If you want to rebalance or buy incrementally this could get stupidly expensive fast. Worth asking about
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11-20-2019, 02:39 PM
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#3
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Recycles dryer sheets
Join Date: Jul 2018
Posts: 327
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The $75 fee would be a killer for me but you might consider using ETF at Fido. I believe those fees are free or maybe $4.95.
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11-20-2019, 03:09 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Mar 2018
Posts: 3,441
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Quote:
Originally Posted by Bruno
The $75 fee would be a killer for me but you might consider using ETF at Fido. I believe those fees are free or maybe $4.95.
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There is no longer any commission fees for buying/selling at Fidelity. Not sure if Vanguard funds are available at Fidelity, though.
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11-20-2019, 03:59 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
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I looked into Vanguard funds at Fidelity or Schwab (can’t remember which) and, for the funds I was viewing, you couldn’t buy the Admiral (lower cost) shares. That may have changed but it’s worth checking).
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11-20-2019, 04:50 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,604
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I have accounts with Vanguard and Fidelity.
The service, consistency of service, higher order analysis tools, personal touch, troubleshooting, etc shows Fidelity to be FAR better. Far better.
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11-20-2019, 05:34 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
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Quote:
Originally Posted by albireo13
I want to move retirement funds into either Vanguard, Schwab, or Fidelity.
Schwab and Fidelity have offices I can drive to which I like.
Anyway, I am looking to stick with either a 3-fund or 4-fund portfolio of Vanguard index funds as proposed in Boglehead forums. I am not an active investor and think I'd just re-allocate once a year if possible.
The VG funds are also available Through Fido and Schwab.
So, given I stick with just Vanguard funds, is there a downside to using Fidelity or Schwab? What is the advantage of working directly with Vanguard?
Thx
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We use Schwab. There is a local rep assigned to us and maybe once every two years I actually see him face to face for some reason. He provides mostly administrative hurdle-jumping and the occasional research report. The bond desk at Schwab is also quite good for buying govvies and brokered CDs. At this time we're not doing any corporates but I'm sure they would be equally helpful for those.
At one point, Schwab charged a trivial commission on some mutual funds (like the $75 cited) but we are like you and trade so seldom that it doesn't matter. Most of our trades are six figures too, so as a % it is completely ignorable if it even still exists. Our last strategy trades were 16 months ago.
Quote:
Originally Posted by steelyman
I looked into Vanguard funds at Fidelity or Schwab (can’t remember which) and, for the funds I was viewing, you couldn’t buy the Admiral (lower cost) shares. That may have changed but it’s worth checking).
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It has changed. I think that VG killed their "Investor" class shares. All of ours at Schwab were converted to Admiral class sometime last spring.
One currently annoying thing about Schwab is that cash is swept into a Scwab bank account paying a pittance instead of to a MMF. I have to then take action to move it to the MMF. I believe Fido is still sweeping to an MMF but given the competitive nature of the business I expect either one or the other to change soon.
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11-21-2019, 06:57 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,871
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Quote:
Originally Posted by albireo13
I want to move retirement funds into either Vanguard, Schwab, or Fidelity.
Schwab and Fidelity have offices I can drive to which I like.
Anyway, I am looking to stick with either a 3-fund or 4-fund portfolio of Vanguard index funds as proposed in Boglehead forums. I am not an active investor and think I'd just re-allocate once a year if possible.
The VG funds are also available Through Fido and Schwab.
So, given I stick with just Vanguard funds, is there a downside to using Fidelity or Schwab? What is the advantage of working directly with Vanguard?
Thx
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Index funds you would use in a BH portfolio are available from Fido. No need to buy Vanguard funds.
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11-21-2019, 09:38 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jan 2018
Location: Elyria, OH
Posts: 1,937
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Quote:
Originally Posted by OldShooter
I believe Fido is still sweeping to an MMF but given the competitive nature of the business I expect either one or the other to change soon.
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I anticipate that Fidelity won't change their automatic sweep to the higher paying MMF soon. Their announcement of zero commissions highlighted their higher rates as a competitive advantage over Schwab and others that went to zero commissions.
In another interesting move, Schwab is buying TD Ameritrade.
https://www.cnbc.com/2019/11/21/char...urce-says.html
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11-21-2019, 09:53 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
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Quote:
Originally Posted by gwraigty
I anticipate that Fidelity won't change their automatic sweep to the higher paying MMF soon. Their announcement of zero commissions highlighted their higher rates as a competitive advantage over Schwab and others that went to zero commissions. ...
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I think you're probably right, but Fido has to feel the pain of the extra expense. It's just a matter of how much they are willing to pay to have that competitive advantage. But I think the two will have the same sweep policy within 6 months or a year. The market is just too competitive for this kind of difference to persist. Somebody will blink.
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11-21-2019, 01:47 PM
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#11
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Recycles dryer sheets
Join Date: Jul 2018
Posts: 327
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Quote:
Originally Posted by Qs Laptop
Not sure if Vanguard funds are available at Fidelity, though.
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You can buy some Vanguard funds at Fido. You can not buy VWENX, VWIAX but you can get VFIAX but it cost $75. On the FIDO site i usually type in the ticker at the top to see if you can purchase or see the cost.
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