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$0 Brokerage When Buying Vanguard ETFs (Save $9) @ Vanguard Personal Investor

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$0 Brokerage When Buying Vanguard ETFs (Save $9) @ Vanguard Personal Investor
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financialminimalism on 28/10/2022 - 18:38 vanguard.com.au (2999 clicks)
Last edited 28/10/2022 - 18:44 by 1 other user
Received this one via email. Looks like a permanent removal of "buy" side brokerage fees when buying vanguard ETFs at Vanguard Personal Investor platform. Saving $9 per buy trade. Sell trade still exists for $9. Pretty good!

We’ve got some exciting news to share!

As part of our ongoing commitment to lower your investment costs and make it easier to invest, we’ve removed the $9 brokerage fee for buying Vanguard exchange traded funds through the Vanguard Personal Investor platform.

This means you’ll pay no brokerage when you buy Vanguard ETFs, regardless of how often you invest, and how much money you invest each time.
Here’s a summary of our updated brokerage fees

Product Buy Sell
Vanguard ETFs $0 $9
Vanguard managed funds $0 $0
ASX direct shares $9 $9

Saving small amounts on costs can make a big difference to your investment returns over the long term. We keep our costs low so you can keep more of your returns.

Financial Brokerage Exchange Traded Fund

Related Stores

Vanguard Australia
Vanguard Australia

Comments

  • Behappy on 28/10/2022 - 18:42

    Can you suggest some buys atm for long term please

    • Ryugen on 28/10/2022 - 18:44
      +18
      1. Buy all VDHG
      2. ??????
      3. Profit
      • avtech on 28/10/2022 - 19:40
        -6

        YTD performance doesn't look too good
        https://www.google.com/search?q=VDHG

        • scratchy on 28/10/2022 - 19:44
          +6

          Compared to?

        • HecticCrunt on 28/10/2022 - 19:45
          +11

          Because it's been a bad year boss. YTD doesn't really mean anything during a downturn.

          VDHG is solid but has higher fees than some other Vanguard products.

        • cheekymonkey97 on 28/10/2022 - 19:45
          +15

          Yeh much better idea to buy when it’s at an ATH lol

          • hothed on 28/10/2022 - 20:15
            +9

            @Ok computer: Yes you are missing something. Need to account for dividends.

            6.47% pa over 5 years for vdhg

            Personally i invest in VAS. 7.67% pa over 5 years

      • sidoz on 28/10/2022 - 19:55
        +4

        VDHG is fine i have it but because of how its structured its a bit annoying tax wise. In hindsight i would of just gone VAS & VGS, or the equivalent from Betashares.

        • f4te on 28/10/2022 - 19:58
          +8

          DHHF

        • uder on 28/10/2022 - 20:23
          +4

          I have VAS and VGS. Pretty pain free tax wise.

          • sidoz on 28/10/2022 - 20:35
            +1

            @uder: Yeah im just going A200 and VGS moving forward.

        • morningmsdaisy on 28/10/2022 - 21:14
          +1

          Care to explain more? I'm looking to buy some VDHG but wasn't aware of any complication with tax

          • sidoz on 29/10/2022 - 09:33
            +1

            @morningmsdaisy: My understanding is how VDHG is structured means as part of re-balancing they effectively buy/sell the underlying funds at certain intervals, and therefor as a holder you get hit with realized gains/tax. Come TAX time it can be annoying and mean PAYG installments are higher. Sorry, its not any more complex, just annoying. In the grander scheme of things its probably not a big deal, but depending on your tax rate i just dont like it. I'm probably describing it wrong, and im not selling it, buy im not buying more either.

        • tommynolips on 28/10/2022 - 22:17
          +2

          I personally prefer to "roll my own" instead of going all into VDHG

          30% VAS (Aus Market)
          30% IVE (International markets excluding US)
          30% IVV (US Market)
          10% VGE (Emerging markets)

          I decided on this approach quite a few years ago now and I can't really remember why/how I landed on it (instead of throwing everything into VDHG) - anyway, it's served me well so far so I'll keep it up

        • nigel deborah on 29/10/2022 - 07:26

          Could you explain? This was my first FY with VDHG, Vanguard sent data to the ATO and prefilled the relevant sections of my return, and I just submitted. Hope I didn't miss something!

          • pangwen on 29/10/2022 - 09:16
            +9

            @nigel deborah: @morningmsdaisy @nigel deborah

            I suspect what @sidoz is referring to is less about making your personal tax more complicated to do, but rather that it has an inefficient structure which makes you pay more CGT on an ongoing basis (reducing the benefits of compounding). Have a read of articles like this for more details.

            FWIW, Vanguard was queried about this in a Morningstar article:

            Vanguard acknowledges there could be small tax impacts from the current structure of VDHG but argues the fund’s diversification and performance outweigh any tax drag.

            “Ultimately we believe the benefits of the current structure outweigh any potential tax implications,” says Evan Reedman, head of product at Vanguard Australia.

            The problem is that VDHG is an ETF made of managed funds, rather than an ETF of ETFs. You would have less tax drag (and fewer fees) by rolling it yourself - however, you have to weigh up the loss of convenience.

            • nigel deborah on 29/10/2022 - 09:29
              +1

              @pangwen: Thanks for the great explanation. I assumed they meant annoying as in inconvenient, but must have been referring to what you're talking about. Appreciate the reply.

            • sidoz on 29/10/2022 - 09:34
              +2

              @pangwen: Yes! Thanks for explaining what i cannot :D

              • 911r on 01/11/2022 - 16:48

                @sidoz: Would this also apply to the index fund version (direct through vanguard)? Never realised this!

                • sidoz on 01/11/2022 - 16:51
                  +1

                  @911r: I believe so. Me either until i dumped half my savings into then read into why i was getting taxed so much. How you purchase to hold shouldn't matter afaik.

    • bobzor on 28/10/2022 - 18:44
      +8

      Large block of land with direct line of sight to Mars

      • hughes on 29/10/2022 - 17:58

        virtual land in the metaverse

    • financialminimalism on 28/10/2022 - 18:45
      +2

      I can't provide financial advice and you should definitely do your own research. VAS and VDHG tend to be the popular ones.
      Source: https://www.selfwealth.com.au/blog/top-10-vanguard-etfs/

    • Almost Banned on 28/10/2022 - 19:24

      I've got VAS, VDHG and VHY as they all seemed decent options.
      Can't complain so far.

    • Ender Wiggin on 28/10/2022 - 20:31

      Was gona say a nasdaq tracker but they dont seem to have one??

    • BargainBuddy on 29/10/2022 - 00:20

      Go for low cost, boring index funds. For example VAS.

    • FrugalDealSeeker on 29/10/2022 - 04:45

      You can never go wrong with VOO, safe lifetime benchmark investment.

    • payless69 on 29/10/2022 - 05:39

      Why?

  • TheAviator on 28/10/2022 - 18:44
    +1

    Only thing holding me back now is they still don't seem to have reinvestment for ETFs, however apparently it's on the way!

    • financialminimalism on 28/10/2022 - 18:47
      +2

      Yeah, I guess it doesn't cost anything more, just an extra hassle to manually reinvest 4 times a year. But potentially worth it still for the brokerage savings, depending on how many times you buy a year.

      • TheAviator on 28/10/2022 - 18:48

        Maybe if we're lucky some of the other brokers may follow suit to compete!

    • prisonmike on 28/10/2022 - 19:49
      +3

      Dividend investment is coming soon.

    • Dsiee on 28/10/2022 - 20:43
      +3

      Auto reinvestment is a pain tax wise and not the best for dollar cost averaging. When you sell it you have to take all the small reinvestment porchases into account at their different prices to calculate capital gains which sucks.

      • ComfortablyNumb on 29/10/2022 - 08:11

        Correct! Much better tax wise and use the dividends to look for the next 'bargain' to buy (by bargain I mean appealing shares where the value is well below actual)

    • nigel deborah on 29/10/2022 - 07:27
      +3

      Can't you set up reinvestment via computershare? Or does that depend on the broker you used? Worked fine for me

      \edit
      Must be because they are not CHESS sponsored, no Computershare access

    • muncan on 29/10/2022 - 12:15

      Problem is you need to buy whole ETF units under Personal Investor. I don’t think they’ll ever work out how to do DRP unless they allow everyone to buy partial units.
      I have an old Retail Investor account, and that reinvests for all my old ETFs . Set and forget, and no $9 fee per DRP either. (sadly Retail funds are closed for new investors)

  • RoadZilla on 28/10/2022 - 18:45
    +29

    They shouldn't have introduced it at the first place itself. It was free earlier and people rushed to make account. They got greedy and introduced $9 brokerage and people left the platform including me. There are discount brokerages outside who charges way less. Now, they have removed the brokerage to bring back the crowd. Nuh uh, it doesn't work that way dear vanguard.

    • SwedishChef on 28/10/2022 - 19:21
      +4

      Even after the backflip, $9 to sell them is overpriced compared to other platforms.

      • RoadZilla on 28/10/2022 - 20:13
        +5

        Exactly. Move your existing portfolio to Stake and get year's worth brokerage waived off. How cool is that.

  • DOGGYWOWWOW on 28/10/2022 - 18:49
    +1

    Is it CHESS Sponsored?

    • Mr Shooty on 28/10/2022 - 19:00
      +1

      Custodian model I believe.

    • blighst on 28/10/2022 - 19:03
      +10

      Does CHESS even matter if it's Vanguard as custodian for Vanguard Etfs?

      • financialminimalism on 28/10/2022 - 19:09
        +2

        Yeah that would be my question too. Aren't we already trusting / putting risk in Vanguard with the underlying shares after all with buying the ETFs? Would Chess sponsored brokerage for VPI do anything to lessen the risk against vanguard? I guess they would be different legal entities (the brokerage arm from the assets).

      • Mr Shooty on 28/10/2022 - 19:12
        +1

        Agreed. I'll be moving my shares over to this as it provides auto invest with no fees. With Vanguard being the custodian, not being CHESS sponsored doesn't concern me as much.

      • Shadowsfury on 29/10/2022 - 07:27

        Vanguard isn't the custodian JP Morgan is

  • indianregulator on 28/10/2022 - 18:56
    +22

    Why not just go with Stake? Buy and sell is $3 each for any trade, so you still save $3 on a buy/sell

    • life is suffering on 28/10/2022 - 19:06

      Yeah makes sense

    • SwedishChef on 28/10/2022 - 19:24
      +3

      Does Stake still have the transfer bonus? They had a transfer your portfolio and get free brokerage for a year promo a while back. Buy with Vanguard, transfer to Stake. Extra bonus, Stake is CHESS sponsored.

      • countmein on 28/10/2022 - 19:32

        They still do, just go click the Stake referral in ozbargain and one of us will get $1 off brokerage fee if you transfer your portfolio to Stake within certain time (30 days?) Otherwise its gonna expired

      • RoadZilla on 28/10/2022 - 20:15

        Yes. They do. I did couple of weeks back and got 1 year brokerage free.

    • daclaw on 28/10/2022 - 19:25
      +8

      This is more for buy & hodl investors

    • countmein on 28/10/2022 - 19:33

      I second this based on looking of their fee per etf, vts 0.03%, vas, vgs, etc

      • seraphim2017 on 28/10/2022 - 22:18

        Is stakes wtf fee really that low? 0.03% compared to Vanguard's 0.18%? That's almost as good as the vanguard US fees!

        • SBOB on 29/10/2022 - 08:21

          Vanguard's management fee would be within the etf pricing itself.. any fee stake charges would be on top of that

          • seraphim2017 on 29/10/2022 - 10:46

            @SBOB: Does that mean it's still best to buy Vanguard products directly through them for the lowest fees and charges?

            Just starting out really in the whole "making excess money work" thing!

      • nigel deborah on 29/10/2022 - 07:29

        This thread is really tripping me out hah. I thought Vanguard (or other ETF manager) charged the percent fee. What is stake charging you per ETF?

        • financialminimalism on 29/10/2022 - 15:26

          Brokerage vs what you're investing in. This deal relates to brokerage only. Investment fees vary based on what you invest in.

    • Ori0n on 28/10/2022 - 20:32
      +2

      I guess if you frequently add to or topup your investments and dont often sell, having $0 buy side brokerage is better.

    • alienurbanite on 28/10/2022 - 20:33
      +4

      Because you could be dollar cost averaging on the way down and putting in money every paycheck, You wouldn't have to pay 3 dollars every time you go in and just have to pay once off 9 dollars when you sell. Rarely does anyone buy and sell at the same frequency because most ETFs are long term plays.

    • financialminimalism on 28/10/2022 - 20:45
      +4

      Because I buy 12 times a year and have never sold. HODL my friend. 💎

      • muncan on 29/10/2022 - 12:20
        +1

        Username checks out

    • SydBoy on 02/11/2022 - 11:38

      I use stake for long time and i realise they don't pay any saving interest if money is sitting ideal in your account so that is bit down side and another major down side is that they don't provide stop loss feature so i use stake only for long hold shares… !

      vanguard is probably i would invest for long-term (has small amount already in VAS)… !

      however, find is useless to manage multiple trading account like stake and vanguard so when vanguard removes their monthly fees on the stock held under vanguard then i could think of using them as broker and invest through them. obviously CHESS is also important to me.

  • Utsav23 on 28/10/2022 - 19:00

    Superhero is another option. Buy free and sell for $5 (only ETFs).

    • virtualds on 28/10/2022 - 19:03
      +14

      They are not CHESS sponsored. If they bankrupt then you will be in trouble

      • Blokeinhisundies on 28/10/2022 - 19:05
        +4

        Vanguard Personal Investor is not CHESS sponsored either

        • life is suffering on 28/10/2022 - 19:06
          +47

          If Vanguard goes down that's the end lol

        • Chaffix on 28/10/2022 - 19:16
          +15

          I'm much more concerned with the longevity of Superhero over Vanguard, lol

        • Blokeinhisundies on 28/10/2022 - 19:22
          +2

          LOL who downvotes a factual post? I didn't even give an opinion.

      • Scantu on 02/11/2022 - 17:33

        If they bankrupt then you will be in trouble

        This isn't factual 👍

  • virtualds on 28/10/2022 - 19:04

    What if they stop the particular product?

    • Dsiee on 28/10/2022 - 20:48

      They sell the underlying assets and you get the money.

      • bengal tiger on 28/10/2022 - 20:58
        +1

        Not necessarily and in most cases unlikely.

        If a fund manager decides to discontinue a specific product they will likely make it a closed fund (no new investments) and investors can redeem at any time from a closed fund.

        Sure, the manager could discontinue the fund immediately instead of converting to closed fund, but you will forego investment management fees (i.e., revenue) and the investor may decide not to invest the redemption back with the same manager, potentially taking their money elsewhere if they are forced to make an investment decision.

  • RobinDong on 28/10/2022 - 19:17
    +6

    Vanguard Australia is incredibly expensive.
    As it said on the page:
    "0.10% p.a. account fee on ASX direct shares"
    What type of brokers will charge annual fees for the stock you hold?

    And in vangaurd.com.au, I can't even buy the VTS (ETF with just a 0.03% expense ratio). So why should I use this platform?

    • congo on 28/10/2022 - 19:18
      +2

      0.1 % is too expensive.
      VTS 0.03% is what I buy on Stake.

    • nigel deborah on 29/10/2022 - 07:34
      +1

      So you're going to get charged a 0.1% fee every year with Vanguard? That's quite a lot of you have a decent sized portfolio, probably more than you're saving on brokerage

      • gopiatweb on 29/10/2022 - 10:32
        +1

        Is this in top of the various other fees thay already charge? If thats the case its a dealbreaker.

      • SydBoy on 02/11/2022 - 11:41
        +1

        yes correct it seems like they charge fees on shares you held … lol :) so not sure why they claim that they are trying reduce fees… !

        stake charge no fees on security you hold through them … just simple $3 flat brokerage for buy or sell order of any value and everything hold in chess… is a plus.

        • Mr Haj on 03/11/2022 - 08:51
          -1

          All ETFs have management fees. If you're buying ETFs through stake you won't magically avoid these fees.

          • SydBoy on 03/11/2022 - 12:48
            +2

            @Mr Haj: You are confused with what I meant by fees. I know all ETF has fees but the fee I am talking above is the additional fee Vanguard charge on security you hold through their platform so it is not ETF fees.

            Say for example you only hold CBA shares and keep that on your Vanguard account then Vanguard will charge you fees to keep that security but if you have same in stake account then you don't pay any fees.

      • Mr Haj on 03/11/2022 - 08:58
        -1

        That is the cost of diversification. All ETFs have a management fee; 0.1% is extremely low. Vanguard rebalancing their ETFs on a daily basis to keep them in sync with the indexes that they mirror. This is something that is not possible for a retail investor.

        • nigel deborah on 03/11/2022 - 12:46
          +3

          I know there's management fees. Other users are implying there's an account fee, seperate from the ETFs, just for using the brokerage account

          • SydBoy on 03/11/2022 - 12:50
            +1

            @nigel deborah: Thanks, that is what I am saying…! Vanguard has account fees while stake doesn't.

          • Mr Haj on 03/11/2022 - 13:49

            @nigel deborah: Oh my bad. Yeah stuff that. Have two brokerage accounts maybe? Sounds like a bit of a hassle.

  • Ahan on 28/10/2022 - 19:33

    Can a corporate trustee of a family trust open this account? Was going to use opentrader until seeing this…

  • plmko on 28/10/2022 - 19:55
    -2

    Learn about ETFs before jumping in.

    If the economy is going to blow up the integrity of these things are going to tested. Don't want to be caught swimming naked.

    • ozmian on 28/10/2022 - 20:19
      +8

      Vanguard have been around since 1975.. economy has blown up a few times to test them. Pretty much everyone is already doing this via super without knowing it. Modelling on index funds over most of history including Great Depression shows the test of times. If all the companies in an index fund fail at the same time we’ve probably got bigger problems like Armageddon. As long as you’re thinking long term and not trying to buy and sell and rich quick trying to fortune tell lows and highs.

      • lancesta on 02/11/2022 - 08:29

        Oh this is pretty much it imo. I have rellos that day things like "get shares in strong companies like bhp and Coles" because they don't understand how ETFs diversify risk across a range of business. When the market goes down generally you feel it when it goes up you feel it but overall it seems safer to me. This is obviously not any advice e.c.t.

  • zaprct on 28/10/2022 - 20:04
    +1

    Any reasons to use this over something like Commsec/Commsec Pocket? I like the convenience of getting the ETFs via Commbank and their Pocket app is good, but haven't ventured to the alternatives yet

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