Buying and selling Vanguard and other mutual funds | Vanguard (2024)

FAQs

Buying and selling Vanguard and other mutual funds | Vanguard? ›

Buying & selling

The answer depends on you and your investment goals. There's no reason you can't have accounts with both Fidelity and Vanguard (among others). You'll have two (or more) sets of statements to review, multiple phone numbers to remember, several websites to navigate and hundreds of funds to understand and monitor.

Vanguard Brokerage doesn't charge additional fees for a purchase, a sale, or an exchange of any load mutual fund offered through our program. You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free online) or through another broker (which may charge commissions).

Any investor transferring money out of a given fund may not transfer money back into that same fund for 30 days. Fund purchases made through payroll contributions, loan payments or rollovers, or by any other means besides an exchange will not fall under this restriction.

While both institutions offer robo-advisors, Vanguard's Personal Advisor Services, which is available to clients who can meet a $50,000 account minimum, offers a little more hands-on investment guidance and assistance with portfolio construction. Vanguard also has slightly lower expense ratios on its index funds.

Fidelity is your answer. The tension between these two starts for those investors who are looking to compare mutual funds, fees, account minimums and investment offerings.

When the market cratered, investors withdrew $16.4 billion from Vanguard's index mutual funds. What accounts for remaining index mutual fund outflows? Johnson says it could be clients pulling out money because they're retiring, or because they're negatively affected by the pandemic.

Money market funds and other securities held in the Vanguard Brokerage Account are eligible for SIPC coverage. Securities in your brokerage account are protected up to $500,000. To learn more, visit the SIPC's website.

Rest easy knowing the cash in your Vanguard Cash Plus bank sweep is eligible for FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts. You can keep all your money in the bank sweep or diversify into 5 available Vanguard money market funds (each with a $3,000 minimum investment).

Do I owe taxes when I sell my stock on Vanguard? ›

Capital gains tax is charged on profits made from the sale of an investment. In other words, if you sell an investment for more than you paid for it, you may owe capital gains tax on your earnings. The exact rate you'll pay is determined by your overall income level and how long you held the assets before selling.

While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.

Vanguard charges no closing, transfer or inactivity fees. There is a $20 annual account service fee for all brokerage accounts and IRAs that is easily waived for clients who sign up for statement e-delivery.

While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.

Bottom Line. Overall, Vanguard and Fidelity are both great choices. They offer a wide range of investment options, low costs, and hands-off or active management depending on your preference.

In most situations, you will find what you need at Fidelity. There are a few downsides. Fidelity does not offer cryptocurrency investing. The company is also missing some features found on other investment platforms, like futures trading and paper trading, where you can practice trading.

Fidelity charges no account fees for retail brokerage accounts or IRAs. Vanguard IRA accounts that are mutual-fund-only charge an annual fee of $25 for each Vanguard mutual fund. Vanguard brokerage account customers can avoid the $25 annual fee by signing up for electronic delivery of statements.