Vanguard offers commission-free ETF trades for brokerage clients following rivals’ price cuts
By Mark Jewell, APTuesday, May 4, 2010
Vanguard offers commission-free ETF trades
BOSTON — Vanguard is undercutting rivals with commission-free trades for its exchange-traded funds. The company, best known for its index mutual funds, is also slashing brokerage clients’ costs for stock trades.
Vanguard, based in Valley Forge, Penn., announced Tuesday that it’s introducing commission-free trades for brokerage clients who buy and sell the company’s lineup of 46 ETFs. Most clients will pay either $7 or $2 to trade stocks, depending on how much money they have with Vanguard.
Vanguard’s moves follow recent price cuts by Fidelity Investments and Charles Schwab.
ETFs are baskets of stocks or bonds that differ from mutual funds in that they can be traded like stocks during daily trading sessions, rather than being priced once a day.
