You need a Vanguard brokerage account to trade stocks and ETFs (exchange-traded funds). Getting started is easy and we can help you along the way. Most mutual funds in the Vanguard Index have a corresponding ETF. The most significant difference between mutual funds and ETFs is how tradable the stocks are.
ETFs can be bought and sold throughout the day, while mutual fund stocks only trade once a day. In general, ETFs may be more suitable than mutual funds for investors seeking lower minimum investment amounts and who want greater control over transaction prices. However, investors who want to make regularly scheduled automatic investments or withdrawals can do so with mutual funds, but not with ETFs. You can add mutual funds from many other companies to your portfolio and enjoy the same quality and breadth of service you get with your investments in Vanguard.
You'll also have access to the full range of funds and ETFs offered by Vanguard and you won't have to pay additional fees. Instead, investors must buy and sell Vanguard ETF shares on the secondary market and hold those shares in a brokerage account. Vanguard Brokerage and fund families whose funds can be traded through Vanguard Brokerage impose certain limits on frequent transactions and reserve the right to refuse a transaction if it appears that you are making frequent trades or are trading in the market. You'll make a phone call, receive a full statement of account, and sign in to a website to manage and transact on your accounts.
The views and opinions expressed do not take into account the particular objectives, needs, restrictions and circumstances of a specific investor and should therefore not be used as the basis of any specific investment recommendation. In addition, for many of its mutual funds, Vanguard offers up to three classes of stocks: investor stocks, Admiral stocks and institutional stocks, with each class offering ever lower spending ratios and, therefore, a better return, in exchange for higher minimum investments. Due to the popularity of Vanguard mutual funds and ETFs, some large brokerage firms now sell their index funds and ETFs in addition to their own. The popular Vanguard 500 Index Fund and the Vanguard S%26P 500 ETF provide good examples of the differences in costs and transactions involved in investment funds and ETFs.