No brokerage fee for Vanguard ETFs

Yasmine Raso

Senior Journalist, Financial Newswire

28 October 2022

Vanguard Australia has announced investors will no longer have to pay the nine-dollar brokerage fee for exchange traded fund (ETF) purchases on the Vanguard Personal Investor Platform from 26 October.

The manager also announced a suite of new features will be available on the platform in the coming months, with its existing Auto Invest capability to be extended to ETFs, new Vanguard Personal Investor Kids Accounts added and an Automatic Reinvestment capability for ETFs.

“We built the Vanguard Personal Investor platform with the aim of changing the way Australians invest, by providing access to our high-quality, low-cost investment products and promoting smart investing strategies,” Balaji Gopal, Vanguard’s Head of Personal Investor, 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. We continue to invest in refining and enhancing our offer.

“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.”

Vanguard also said analysis on its Auto Invest featured found investors already using it with managed funds investments were “more resilient to market volatility”, having continued to make regular contributions in light of the current market conditions.

Investors will also be able to make regular investment contributions starting from $200 fortnightly, monthly or quarterly into their Vanguard ETFs.

“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,” Gopal said.

“We’re excited about lowering the cost of investing while launching new features that will support investors in building their long-term wealth and we look forward to providing more specific details in due course.”