Vanguard Brokerage Services

Discussion in 'Share Investing Strategies, Theories & Education' started by Jay__, 2nd Oct, 2017.

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  1. Jay__

    Jay__ Member

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    Hi,
    Has anyone heard of Vanguard's Brokerage Services (Vanguard Brokerage Accounts)
    See here: Vanguard Brokerage trading fees & commissions | Vanguard

    It seems like you can buy ETFs with this account, like you would if you had say a CommSec account. There are no brokerage fees if you buy Vanguard ETFs. There is a $20p.a. account service fee but will be waived if certain conditions are met. I feel like I'm missing something as it seems too good to be true.

    Can anybody enlighten me please?
     

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  2. twisted strategies

    twisted strategies Well-Known Member

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    potential issue 1. this is a US website , so some laws rules will differ to the what would happen with an Australian broker ..

    additional assumption is that fees are quoted in $US ( which will incur foreign exchange transactions )

    i hold VAS and VHY , both Vanguard offerings but listed on the ASX , where i bought them through my broker , who DOES NOT charge annual fees , at all , only standard brokerage

    since this is a US website you will have to research the extra complexities of holding US nominated ETFs/bonds ( including US tax liabilities )


    Low-cost managed funds | ETFs
    this website might be more like what you are after
     
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  3. Jay__

    Jay__ Member

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    Thanks for your insights mate, especially with regards to it being in $US. I will stick with CommSec.
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    i have accounts with both Commsec and Bell Direct

    could i suggest intense and thoughtful research ( stock up on headache medicines first )

    those tiny details can be VERY IMPORTANT to you and can be turned to your advantage , with good timing

    one timing doesn't fit all ETFs ( and less obviously that you would expect )

    each ETFs is in fact quite different to stable mates , and what seem direct rival offerings ( say high div. v. high yield )

    good luck
     
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  5. Jay__

    Jay__ Member

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    Thanks for all your advice and the encouragment. Plan is to take advantage of CommSec's low brokerage for <=$1000 investments of $10....plus freebies at the start. And only going to go with VAS for now.
     
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  6. twisted strategies

    twisted strategies Well-Known Member

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    do the maths and see if the VAS dividend reinvestment scheme , works in your best interest ,

    and good luck trying to time a nice entry point VAS normally drops in parallel to the ASX 200 ( XJO ) and ASX 300 ( XKO )

    cheers
     
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  7. Jay__

    Jay__ Member

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    Deciding whether to reinvest dividends is essentially a cash flow question right? Like if I don't need to live off the dividends, surely reinvesting it (and doing the same for 20, 30 years) with compounding would make the most sense.

    I'm also planning on sticking in say $1K a month, so timing is less important? And I did do the maths for 5, 10, 25 years outlook and even with brokerage it works out miles ahead of mutuals (e.g. VAN0010AU).
     
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  8. twisted strategies

    twisted strategies Well-Known Member

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    The Effect Of Compounding

    Dividend Reinvestment Plan - DRIP

    now in 2011 when i bought into VAS and VHY participating in the DRP schemes suited my aims very nicely ( and both pay divs 3 monthly)

    however in January 2017 my ( financial ) situation has changed , and at ( this ) years end i will need to review my income situation and will seriously consider only participating only 50% in the DRP ( i still need some asset growth to help resist inflation .)

    if you are planning monthly buys , could i suggest putting the extra research into rival ETFs and LICs ( for a month or more ) when a different play is better value ( it adds extra paperwork , but sometimes the upside is worth it )

    yes your plan has some sense to it , but also stay flexible enough to take a good opportunity when presented with one .

    cheers and good luck ( don't be afraid to hold that cash for an extra week or two , if you think a price slide is coming )
     
  9. crootster

    crootster New Member

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    Jay,

    ETFs trading

    This mob has a pretty good name in the trading game, I don't personally trade ETF's they may be one to research as well!!

    Greg