(Replace 12/23/24: I simply went forward and transferred out some ETFs out of Vanguard and didn’t appear to get hit with any charges. Mine was not a full account switch – it was two ETFs that had been utterly transferred out and one which was partially transferred out. It may nonetheless be that for full account transfers they’d hit us with $100 price. A simple approach round this ought to be to only go away the account open with none funds – switch over all property and go away a couple of {dollars} there, withdraw these few {dollars}, after which simply let the account languish; hopefully that’ll assist keep away from charges. I’d be taken with listening to different individuals’s experiences because the anybody else has expertise because the 7/1/24 change.)
Unique Publish 5/1/24:
Vanguard despatched out an e mail with some updates coming to their price schedule, efficient July 1, 2024. I’ll put up the complete e mail picture on the finish of this put up and you may see the up to date Vanguard price schedule at this pdf.
Two issues that jumped out, as identified by readers:
- Vanguard added a $100 Account closure and switch price: “A $100 processing price could also be charged for account closure or switch of account property to a different agency.”
This may be very related for these of us who prefer to switch brokerage funds to get brokerage bonuses. I’m not sure if the $100 (which “could also be charged”) will apply when transferring out partial property or a portion of 1 holding. Regardless, it’s a brand new factor to be anxious about with Vanguard. Some individuals discover Constancy to be the perfect brokerage hub account.
2) Vanguard added a 1% price on some international dividends: “Overseas securities and American Depositary Receipts (ADRs) dividends price: A price of 1% on the gross dividend quantity will likely be charged when a dividend is paid on a international or ADR asset held in U.S. {dollars}.”
I haven’t absolutely wrapped my head round this but, however this may considerably improve the general expense ratio for international holdings. For instance, I maintain a piece of my investments in VXUS which has an expense ratio of .08%. Let’s say that the inventory provides round 3% in annual dividends yearly. The expense ratio would find yourself being .11% as a substitute of .08%. (For every $100 in VXUS holding, you’ll pay $.08 for the .08% expense ratio, plus you’ll pay $.03 for the 1% price on the $3 of dividends paid. Whole price finally ends up $.11 per $100 for a complete expense ratio of .11%.) Readers word that the 1% price is just for shares that commerce on international exchanges, not funds like VXUS which commerce on US exchanges.
3) $25 for broker-assisted trades: “A $25 broker-assisted fee will likely be charged for every Vanguard mutual fund1 and Vanguard ETF® (exchange-traded fund) commerce positioned over the cellphone and for closing transactions positioned by Vanguard Brokerage Companies® to cowl a margin name or fulfill an impressive debt owed in your brokerage account.”
The modifications aren’t horrible total, however I’m weighing whether or not to change from Vanguard to Constancy or one other brokerage. Be happy to share your evaluation or ideas concerning the varied price modifications within the feedback beneath.
