Vanguard improves ETF offering

Vanguard ETF fees

Vanguard has upgraded its ETF offering by dropping certain fees and will soon release an automatic investment capability to this business arm.

Vanguard has removed the brokerage fees for certain exchange traded fund (ETF) transactions made via its in-house investment platform and will also introduce an automatic investment capability relating to this area of its operations.

The removal of the $9 brokerage fee will apply from 27 October for buy transactions for ETFs, but not for sell transactions, and the fee will remain for Australian Securities Exchange direct share buy and sell transactions carried out on the Vanguard Personal Investor platform.

Vanguard Head of Personal Investor Balaji Gopal noted the significance of the move.

“Small changes in fees can make a big difference over time, and the removal of the current $9 brokerage fee for all Vanguard ETF purchases is another step in improving the investing experience with Vanguard, and demonstrating our commitment to delivering the best value we can,” Golpal said.

“Reducing costs and making investing simple with the aim of passing our investors back more of what their investment earns is in our DNA,” he revealed.

Vanguard’s additional changes to its ETF offering are due to be released soon and will include an extension of its Auto Invest capability, currently available across its range of managed funds, to its ETF products.

The capability will allow investors to set up regular investment amounts from $200 either fortnightly, monthly or quarterly, into one or a range of Vanguard ETFs and will be available in the coming weeks.

“Analysis shows that Vanguard investors who have adopted that automated feature are more resilient to market volatility, having made the conscious decision to contribute regularly to their investments despite the market’s spikes or dips,” Gopal explained.

“We hope that by extending this feature to our suite of ETFs, investors will be encouraged to stay the course as they build and diversify their wealth over the long-term, regardless of which investment structure they choose.”

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