Vanguard ETF costs & minimums
Know exactly how low your ETF costs will be—and how much you'll need to get started.
ETF fees and expenses at a glance
Every ETF has an expense ratio, which covers the cost of operating the fund. On average, Vanguard ETFs® cost nearly 75% less than those from other companies.*
The bid-ask spread is typically a few pennies per share for Vanguard ETFs.
Costs you won't have to pay at Vanguard
No commissions when you buy and sell Vanguard ETFs through Vanguard.**
No extra fees to have one of our investment professionals place a trade for you.
No account service fees if you sign up to receive your account documents electronically, or if you're a Voyager, Voyager Select, Flagship, or Flagship Select Services client. If none of these apply, a $20 fee will be charged annually.
Minimum investment requirements
For a new brokerage account
When you open your Vanguard Brokerage Account, you'll initially need to add at least $3,000 to your settlement fund. (If you already own Vanguard Prime Money Market or Vanguard Tax-Exempt Money Market Fund, you can use it as your settlement fund without having to add more money to it.)
Once you've established a brokerage account, the minimum ETF purchase is one share.
How much could our low expense ratios save you?
Wondering why our ETF expenses are so much lower than the industry average? Vanguard was built differently to make sure we stay focused on keeping your costs low. You only pay what it costs us to run the ETFs—period.
See how much you can save
See the potential impact Vanguard's low-cost ETFs can have on your savings over time compared with the industry average. Your savings have the potential to grow even more when you're invested for longer periods of time.
All examples assume an initial investment of $50,000 earning 6% each year.
At Vanguard you could save $3,814 over 10 years based on Vanguard's average ETF expense ratio of 0.14%, which results in a cost of $1,246 in this scenario, compared with the industry average expense ratio of 0.58%, which results in a cost of $5,060.
Over 20 years, you could save $13,180 based on costs of $4,431 at Vanguard compared with $17,611 at the industry average. Stay invested for 30 years and you could save $34,165 based on costs of $11,820 at Vanguard compared with $45,985 at the industry average.
If the rate of return were altered, results would vary from the hypothetical examples provided. The final balances described are after costs. These examples do not represent any particular investment and do not account for inflation. There may be other material differences between investment products that must be considered prior to investing.
Sources: Vanguard and Lipper, a Thomson Reuters Company, as of December 31, 2013.
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