Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
If Fidelity offered Vanguard mutual funds for no-commission, would you switch?
Old 08-16-2017, 09:30 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,449
If Fidelity offered Vanguard mutual funds for no-commission, would you switch?

Fidelity asked me to fill out a survey for them which ended up mostly about index funds.

I had this thought:

If Fidelity offered Vanguard mutual funds (and ETFs) for no commission, would you use them?

If you were not a Fidelity customer, would you switch to Fidelity?

If you were a Vanguard customer, would you switch to Fidelity?

I suppose I could do a complicated poll, but it's too complicated.

Thanks for all responses!

For myself, I use Vanguard products at Fidelity, TDAmeritrade, WellsFargo, and Vanguard. All of them without paying commissions. I have the fewest Vanguard assets at Vanguard itself, so I would not actually have to switch away from Vanguard, but would I put more at Fidelity? Possibly, but I don't think so.
__________________

__________________
LOL! is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-16-2017, 09:42 AM   #2
Full time employment: Posting here.
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 631
Quote:
Originally Posted by LOL! View Post
... For myself, I use Vanguard products at Fidelity, TDAmeritrade, WellsFargo, and Vanguard. All of them without paying commissions. ...
Wow. Too complicated for me. I have everything at Schwab, where commissions are zero or trivial. There is a subtle cost, though, because I cannot buy some of Vanguard's lowest-fee fund version. "Admiral" shares, I think. I have considered moving Vanguard investments to Vanguard for that reason but I really don't want to increase the complexity of my portfolio or face complications when I want to rebalance or move money from one company's fund to another. LIfe is a series of tradeoffs.
__________________

__________________
OldShooter is offline   Reply With Quote
Old 08-16-2017, 09:50 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,449
I have everything at my fingertips via the internet. I consider an account at another vendor no different than another account at the same vendor. That is, I would not forego opening a 403(b) or 401(k) just because my employer used another financial institution than I already had an account at. Nor would I forego using a Health Savings Account for the same reason, nor a 529 plan, nor ....

Nor would I prevent my wife from having accounts just because it complicated things.

That is, multiple vendors don't complicate things for me especially when I don't make transactions in those accounts. For instance, my last self-initiated transaction in my Vanguard taxable account was 8 years ago. For another account it was in 2006.

But yes, multiple vendors can be complicated sometimes.
__________________
LOL! is offline   Reply With Quote
Old 08-16-2017, 09:55 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: E. Wash
Posts: 1,031
Many Vanguard funds have ETF equivalents and can be bought at Fido at the standard 4.95/trade--not quite free but not bad
__________________
nwsteve is offline   Reply With Quote
Old 08-16-2017, 10:02 AM   #5
Recycles dryer sheets
 
Join Date: Nov 2016
Location: Fargo
Posts: 53
No reason to switch from Vanguard.
__________________
bloom2708 is offline   Reply With Quote
Old 08-16-2017, 11:13 AM   #6
Recycles dryer sheets
Happyras's Avatar
 
Join Date: Jun 2015
Location: Redmond
Posts: 208
We primarily use Vanguard funds, with most holdings at VG. We have some Blackrock equivalent index funds in a Fidelity 401k which I am tracking against the VG "equals". I am slowly seeing the actual VG funds doing better than those really low fee BR funds and I may make a move out of the 401K to at least an IRA with better fund options.

We moved most to VG about 18 months ago to get the Admiral shares, but also to get access to the few closed funds that historically done very well like VHCAX admiral and Primecap. However more than 1/2 is in admiral shares of VWENX, VWIAX which could not be held at Fidelity or Schwab.
__________________
Happyras is offline   Reply With Quote
Old 08-16-2017, 11:24 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jan 2014
Posts: 1,297
I understand many of the workings of my investments but not all. Hope I am explaining correctly below.
My work 401k is at Fidelity. I had an old rollover IRA at Vanguard. I was all stock equity in most of my accounts (Vanguard, Fidelity, TD Ameritrade) until coming to this forum and reading about index funds. Still like and own individual stocks but have started learning about index funds and buying them.

After little to no response from Vanguard on questions I had (and I don't have that many, 1 or 2 a year??) I moved my Vanguard IRA to Fidelity IRA last month, did a "in kind" rollover. No fees for doing the rollover. One of the funds transferred was VWINX. I did check with my Fidelity rep and there is no fund at Fidelity that is comparable to VWINX. She could switch it to two different funds but said, if I liked VWINX and understood about the $75 transaction fee to buy more, then keep it. Two weeks ago I received a distribution from some ESOP shares and rolled that over to Fidelity. I used that distribution to buy more shares of VWINX. There was a $75 transaction fee. Never thought about dividends & cap gains...still new to index funds. I emailed my Fidelity rep this morning at 9am regarding the reinvestment of dividends & cap gains for VWINX to see if there were any fees involved, couldn't find anything online. My rep was out for the day but I had a phone call and a follow-up email within 1 hour. Given the service that I receive from Fidelity, $75 for buying a fund maybe once a year is fine with me.
__________________
splitwdw is online now   Reply With Quote
Old 08-16-2017, 11:44 AM   #8
Thinks s/he gets paid by the post
euro's Avatar
 
Join Date: Oct 2015
Posts: 1,086
Quote:
Originally Posted by splitwdw View Post
I understand many of the workings of my investments but not all. Hope I am explaining correctly below.
My work 401k is at Fidelity. I had an old rollover IRA at Vanguard. I was all stock equity in most of my accounts (Vanguard, Fidelity, TD Ameritrade) until coming to this forum and reading about index funds. Still like and own individual stocks but have started learning about index funds and buying them.

After little to no response from Vanguard on questions I had (and I don't have that many, 1 or 2 a year??) I moved my Vanguard IRA to Fidelity IRA last month, did a "in kind" rollover. No fees for doing the rollover. One of the funds transferred was VWINX. I did check with my Fidelity rep and there is no fund at Fidelity that is comparable to VWINX. She could switch it to two different funds but said, if I liked VWINX and understood about the $75 transaction fee to buy more, then keep it. Two weeks ago I received a distribution from some ESOP shares and rolled that over to Fidelity. I used that distribution to buy more shares of VWINX. There was a $75 transaction fee. Never thought about dividends & cap gains...still new to index funds. I emailed my Fidelity rep this morning at 9am regarding the reinvestment of dividends & cap gains for VWINX to see if there were any fees involved, couldn't find anything online. My rep was out for the day but I had a phone call and a follow-up email within 1 hour. Given the service that I receive from Fidelity, $75 for buying a fund maybe once a year is fine with me.
This has, generally speaking, been my observation too. In recent years, VG has lost its edge on customer service and Fido/Schwab have kept up with the times. I was a VG customer for decades, but I'm now completely switched th Fido and Schwab. Doesn't mean VG is terrible, it is not. Just means the others are better, so why stick with an inferior situation.
__________________
euro is offline   Reply With Quote
Old 08-16-2017, 11:53 AM   #9
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Second City Land
Posts: 23,732
I have one account with Fidelity and one with Vanguard. DM and our 3 children are only with Vanguard. There is no perfect business, and each has strengths and weaknesses.

When I think about consolidating assets, it's to Vanguard. No thought at all of doing so with Fidelity, or anyone else. I still remember the early '00's when Fido got caught up in the mess of backdating fund transactions and taking payments to steer their brokerage business.
__________________
MichaelB is online now   Reply With Quote
Old 08-16-2017, 11:57 AM   #10
Full time employment: Posting here.
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 631
I have nothing at VG though I hold a lot of VG funds. From reading about the funds flows they are getting, my guess is that their customer service operation is probably stressed to the breaking point. Training reps to deal with investments is not like training reps to sell junk for Home Shopping Network. Probably they all have to be Series 7 licensed. On top of that they have to understand VG's procedures and products.
__________________
OldShooter is offline   Reply With Quote
Old 08-16-2017, 12:02 PM   #11
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,188
I guess I'm too controlled by inertia. Unless I have a significant problem with VG, I'll stay with them and not even check out FIDO. I've heard such good things about FIDO I would have no qualms about using them, but there's that inertia thing. YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 08-16-2017, 12:50 PM   #12
Thinks s/he gets paid by the post
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 4,669
Share price reporting, plus no ETF for at least two of my admiral funds have kept me in Vanguard. Do you lose the specific ID information if you move shares over? I have a couple funds in taxable I'd still like to be able to do that on without keeping track myself, plus a third that has only old non-covered shares that I'd need to continue average cost on.


I read about the issues people have at Vanguard, and it makes me think, but until I face something myself, I'll stay with them. I've had a couple close calls that nearly pushed me over, including one where I got a statement that included a page to a totally different address with my name and account info. I asked my flagship rep and he looked into it and said my account was secure and he was looking into how that happened, but I heard nothing back. The other one was something to do with them using the wrong shares than what I specified to sell or otherwise getting the basis wrong. They corrected it but again couldn't explain why it happened.


I can't even find the notes on the exchange because I've just realized they purge messages after some time, even exchanges I initiated. I don't care if they purge the standard automated ones, but not those. And they aren't in email either, because their response points just points to their message center. Man, they keep pushing me closer to the edge. Maybe next time Vanguard or someone has a transfer special I'll move the ones I can convert to ETF over.
__________________
RunningBum is offline   Reply With Quote
Old 08-16-2017, 02:41 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,385
Long time satisfied Fidelity customer. But if I were with VG or Schwab, I doubt I would move to Fidelity as they all can do what I need at similar costs. Not enough difference to bother with moving.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 08-16-2017, 02:52 PM   #14
Recycles dryer sheets
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 424
Quote:
Originally Posted by Koolau View Post
I guess I'm too controlled by inertia. Unless I have a significant problem with VG, I'll stay with them and not even check out FIDO. I've heard such good things about FIDO I would have no qualms about using them, but there's that inertia thing. YMMV
Same here. Not a big fan of moving around. Depending on who you ask and when you ask them, every company sucks and every company is wonderful. Of course the truth lies somewhere on that spectrum. I'm not inclined to test the waters as long as my needs are met pretty well.

Further, I have a couple different accounts (Schwab and FIDO). If I wanted a Vanguard fund, I'd just get a Vanguard account.
__________________
Jerry1 is offline   Reply With Quote
Old 08-16-2017, 03:01 PM   #15
Recycles dryer sheets
 
Join Date: Jan 2013
Posts: 93
I've had everything at Vanguard for many, many years and have always received excellent service. Therefore I'm very surprised to see the assortment of issues others have experienced. The short answer to the OP is no way.
__________________
enjoyinglife102 is offline   Reply With Quote
Old 08-16-2017, 03:51 PM   #16
Moderator Emeritus
 
Join Date: May 2007
Posts: 10,936
We have been with VG for 12 years and recently decided to move part of our portfolio to Fidelity. We were not dissatisfied with VG's service and have not been wowed by Fidelity's supposed superior service either. The reason behind the move had more to do with cybersecurity concerns. I see no reason to buy VG funds at Fidelity. We invest in their in-house index funds, which seem just as good as VG's.
__________________
FIREd is online now   Reply With Quote
Old 08-16-2017, 04:08 PM   #17
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 114
We have all of our retirement accounts at Vanguard (Flagship). Is there any advantage to having an actual office location (which Fidelity has in my town)? I doubt I'd have a reason to go into an office, but was wondering if it might be better once I'm gone to have a place for DW to meet with an advisor.

I will have to admit that I've been displeased with the customer service at Vanguard for the last couple of years. It took me several phone calls to get answers about Vanguard's Advantage checking account. These were very simple questions. Then, I find out that my latest new Flagship Advisor is basically just out of school with only previous work experience at PetSmart. Growing pains, I guess.
__________________
PatrickA5 is offline   Reply With Quote
Old 08-16-2017, 04:52 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: E. Wash
Posts: 1,031
Quote:
Originally Posted by PatrickA5 View Post
We have all of our retirement accounts at Vanguard (Flagship). Then, I find out that my latest new Flagship Advisor is basically just out of school with only previous work experience at PetSmart. Growing pains, I guess.
If you are Flagship at VG, you would be a Private Client at Fido. As a PC, I have almost always had CFP's for my rep. My current rep is outstanding--over 25 years experience and a CFP.
Also for PC, the main rep is teamed with a service specialist(also registered so can do orders). I use ours for most of the housekeeping stuff. Most recently she fixed an online order that I inadvertently placed in the wrong account. Emailed her the issue and it was fixed all in a couple of hours. I can not even begin to imagine the S-show it would have created at VG when I was there.
__________________
nwsteve is offline   Reply With Quote
Old 08-16-2017, 04:56 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,279
Quote:
Originally Posted by RunningBum View Post

I've had a couple close calls that nearly pushed me over, including one where I got a statement that included a page to a totally different address with my name and account info. I asked my flagship rep and he looked into it and said my account was secure and he was looking into how that happened, but I heard nothing back.
HA, ha.... too predictable.

Testing , testing 1,2,3.

It's difficult to get test data that's meaningful and representative of the customer base. In many cases innovative programmers will pull production data into test systems, scramble it a bit, and run test programs against it. No big deal, till someone forgets to modify the JCL used in testing and boom a whole bunch of statements go out to customers!

I never worked at Vanguard, but I've seen that happen at numerous fund companies. It's one of the common things that used to get entry level people shot. I'm assuming that little issue is addressed with security today, but I've seen that happen 100 times.
__________________
MRG is online now   Reply With Quote
Old 08-16-2017, 05:14 PM   #20
Thinks s/he gets paid by the post
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 4,669
Quote:
Originally Posted by MRG View Post
HA, ha.... too predictable.

Testing , testing 1,2,3.

It's difficult to get test data that's meaningful and representative of the customer base. In many cases innovative programmers will pull production data into test systems, scramble it a bit, and run test programs against it. No big deal, till someone forgets to modify the JCL used in testing and boom a whole bunch of statements go out to customers!

I never worked at Vanguard, but I've seen that happen at numerous fund companies. It's one of the common things that used to get entry level people shot. I'm assuming that little issue is addressed with security today, but I've seen that happen 100 times.
Huh. That's a reasonable sounding explanation. Seems to me they should create new but realistic records, but I can see how this would be easier.

I have horror stories from other brokers. Smith Barney used to administer our company's employee stock program. This was back when most things were online, and it was hit or miss to get someone to pick up a fax with wiring instructions from a sale, so I just them mail it. I didn't get a high 5 figures check once, and had to get it resent, which they did. A month later I got the original, which the post office rejected because SB's stamp machine misalign the postal mark, and nobody re-mailed it for awhile. The SB reps always whined when we pulled money out because they wanted to manage it. We'd tell them the problems, and they'd say if we'd just keep our whole account there we'd get more personal management and those things wouldn't happen. I never wanted to get worse service so I kept my thoughts to myself, but they had a golden chance to impress potential customers, and totally botched it.
__________________

__________________
RunningBum is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Offered a package, would you stay or go?? bclover FIRE and Money 47 10-12-2015 10:56 PM
Commission Fee Management in Mutual Funds Luhar Other topics 18 09-03-2013 09:08 PM
65 ishare ETFs Commission Free @ Fidelity tjscott0 Stock Picking and Market Strategy 7 03-14-2013 06:54 PM
Would you trade Fidelity funds to buy Vanguard? freetodream FIRE and Money 22 12-19-2012 04:59 AM
Would you switch brokerages? (Regional bank to Fidelity) terminator FIRE and Money 15 01-23-2007 03:45 PM

 

 
All times are GMT -6. The time now is 03:36 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.