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Advantage to use Vanguard for Vanguard index funds?
Old 11-20-2019, 03:25 PM   #1
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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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Old 11-20-2019, 03:33 PM   #2
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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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Old 11-20-2019, 03:39 PM   #3
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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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Old 11-20-2019, 04:09 PM   #4
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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.
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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Old 11-20-2019, 04:59 PM   #5
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I looked into Vanguard funds at Fidelity or Schwab (canít remember which) and, for the funds I was viewing, you couldnít buy the Admiral (lower cost) shares. That may have changed but itís worth checking).
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Old 11-20-2019, 05:50 PM   #6
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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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Old 11-20-2019, 06:34 PM   #7
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Originally Posted by albireo13 View Post
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
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.

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I looked into Vanguard funds at Fidelity or Schwab (canít remember which) and, for the funds I was viewing, you couldnít buy the Admiral (lower cost) shares. That may have changed but itís worth checking).
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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Old 11-21-2019, 07:57 AM   #8
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Quote:
Originally Posted by albireo13 View Post
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
Index funds you would use in a BH portfolio are available from Fido. No need to buy Vanguard funds.
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Old 11-21-2019, 10:38 AM   #9
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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.
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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Old 11-21-2019, 10:53 AM   #10
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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. ...
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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Old 11-21-2019, 02:47 PM   #11
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Not sure if Vanguard funds are available at Fidelity, though.
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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