Vanguard is known for its straightforward brokerage platform and a suite of low-cost mutual funds, yet it also boasts a significant array of exchange-traded funds (ETFs), offering 86 diverse options.
“Overall, Vanguard is highly regarded among professional investors and financial experts, primarily due to its extensive array of offerings,” says Sean August, CEO at the August Wealth Management Group. “The company is renowned for cost-effectiveness, flexibility, transparency and a client-centric approach.”
In particular, for self-directed retail investors, Vanguard’s ETFs present numerous compelling advantages over traditional mutual funds, particularly if you’re not restricted by a 401(k) plan’s choices.
One key benefit of ETFs is the absence of minimum investment thresholds. While Vanguard’s Admiral Shares mutual funds typically require a $3,000 minimum investment, ETFs can be bought for the price of a single share. With many brokerages now offering fractional shares, even investors with limited funds can easily enter the market.
ETFs also offer greater flexibility. Unlike mutual funds, which are only traded at the closing net asset value (NAV) at the end of each trading day, ETFs are traded throughout the day like stocks. This allows for more dynamic trading strategies and the ability to respond quickly to market movements.
