Other conditions & costs that may apply
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. Commission-free trading of non-Vanguard ETFs applies only to trades placed online; most clients will pay a commission to buy or sell non-Vanguard ETFs by phone. Vanguard Brokerage reserves the right to change the non-Vanguard ETFs included in these offers at any time. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. All ETF sales are subject to a securities transaction fee. Account service fees may also apply.
Vanguard & Fidelity settlement funds & Schwab's sweep feature
Vanguard Federal Money Market Fund has a 0.11% expense ratio (as of December 31, 2018) and invests mostly in short-term U.S. government securities, including Treasuries and agencies. A $3,000 minimum initial investment is required for a mutual fund account (no minimum if you're using the fund as your brokerage settlement fund). Account service fees may apply. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Fidelity® Government Money Market Fund has a 0.42% expense ratio as of June 29, 2019. It normally invests in at least 99.5% of total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities). You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund's sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. The fund will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors.
The Schwab Bank Sweep feature is FDIC-insured up to $250,000 per depositor, per insured institution, based on account ownership type. This means that bank deposits are guaranteed up to $250,000 as to principal and interest by an agency of the federal government. The Bank Sweep feature also has no account service fees. The Bank Sweep feature includes access to additional features such as overdraft protection, ATM access (immediate access to your money), online bill pay, free checks, and other cash management and convenience features.
Each company's products differ, so it's important to ask questions to understand account features, minimums, and potential withdrawal fees.
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Vanguard Federal Money Market Fund—the settlement fund for all Vanguard Brokerage Accounts—delivered a higher average yield than 95% of its peer group last quarter.4
Government Money Market Fund (SPAXX)5
Money market funds and bank sweep features have different characteristics you'll want to consider. Read more about these Vanguard, Fidelity, and Schwab accounts
57-day SEC yield as of December 18, 2019, for each fund.
6The annual percentage yield (APY) as of November 4, 2019, for the Schwab Bank Sweep feature (for retirement and brokerage accounts) on uninvested cash balances less than $1 million.
The SEC yield is the average amount earned by a money market fund's investors (after expenses) over the past 7 days and then multiplied into an annual figure. APY is the total interest earned on a bank product in 1 year, assuming no funds are added or withdrawn. One big difference is that SEC yields don't take into account compounding, which makes them seem lower when compared directly to APYs. To account for that, money market funds also report a "compound yield," which can be compared with an APY.
See why Vanguard ETFs are hard to beat
beat the returns of their peer-group averages.7
is how much lower Vanguard's average ETF expense ratio is than the industry average.8
had no taxable gains distributions.9
of Vanguard ETF® marketable orders were executed with no spread cost.10
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1Includes more than 160 Vanguard mutual funds plus about 3,000 no-transaction-fee funds from other companies. A few Vanguard mutual funds charge special purchase and/or redemption fees that are paid directly to the funds to help cover higher transaction costs and protect long-term investors by discouraging short-term, speculative trading. Those fees vary from 0.25% to 1.00% of the amount of the transaction, depending on the fund.
2Plus $1 per options contract.
4Based on average 7-day yield for the period from July 1, 2019, through September 30, 2019, during which Vanguard Federal Money Market Fund outperformed 550 of 577 of its Lipper peer-group funds. Yield comparison results will vary for other time periods. Sources: Vanguard and Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View current fund performance
7For the 10-year period ended September 30, 2019, 31 of 34 Vanguard stock ETFs and 4 of 5 Vanguard bond ETFs—for a total of 35 of 39 Vanguard ETFs—outperformed their Lipper peer-group averages. Results will vary for other time periods. Only ETFs with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View ETF performance
8Vanguard average ETF expense ratio: 0.07%. Industry average ETF expense ratio: 0.27%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2018.
9Includes capital gains paid over the past 5 years as of December 31, 2018.
10Source: IHS Markit RegOne. Includes orders up to 2,000 shares entered from January 2, 2019, through October 31, 2019, that were executed during market hours at the midpoint of the spread or better.
11The "MONEY 50" lists published in the January/February 2019 Investor's Guide of Money magazine focus on mutual funds and ETFs that have low costs and produce long-term returns that match or beat their benchmarks. Past performance cannot be used to predict future returns. Fund share prices will fluctuate, so investors could lose money if they sell when prices have fallen.
12Forbes "Best ETFs for Investors in 2019" list included 824 ETFs with at least $10 million in assets and expense ratios no higher than 0.40%. It displayed the lowest-cost ETFs in each of 55 categories. The Honor Roll combined excellent cost efficiency with liquidity. Performance was not considered for any of the ratings. Forbes bases the rankings on data from Morningstar, Bloomberg, and fund distributors. Forbes is not affiliated with Vanguard or its ETFs. The articles mentioned here are neither offers to sell nor solicitations of offers to buy shares.
13Kiplinger is not affiliated with Vanguard or its ETFs. The article is neither an offer to sell nor a solicitation of an offer to buy shares.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for limits. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.
You could lose money investing in Vanguard Federal Money Market Fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Prior to buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, from any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. Call The Options Industry Council (OIC) Helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
All investing is subject to risk, including the possible loss of the money you invest. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost.
Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.