Originally posted October 9, 2020
In this review from The Vanguard Group, we’ll take a look at a company that is the undisputed champion of buy-and-hold mutual funds Their combination of low-cost investing and customer service is second to none
Having said that, Vanguard is not suitable for all types of traders… in fact, it is absolutely not a good choice for active trading Now some might see this as a negative, but in truth an active trader just isn’t the customer Vanguard intends to serve
If you are looking for the best option to buy and hold mutual funds and ETFs on the market, Vanguard should be your choice.You will find plenty of options here to help you diversify your portfolio and prepare for the retirement
It is important to understand both what Vanguard is and what it is so as not to understand my glowing review Technically, Vanguard has a trading platform, but it is not primarily a platform. form of trading like Merrill Edge or similar
Vanguard primarily creates financial products like mutual funds and ETFs You can invest in these funds through your 401 (k), through an IRA, or through a taxable brokerage account like Robinhood offers
Vanguard is known to be inexpensive, which is important when trying to maximize your returns Suppose your mutual fund earns you 8% a year, but charges you a 1% expense ratio over your money This reduces your overall return to 7% – and for what?
In contrast, the expense ratio of Admiral shares of the Vanguard 500 Index Fund (Nasdaq: VFIAX) is 004% This is only a few cents compared to some other mutual funds available in the market
Of course, being low cost isn’t everything, but it certainly goes a long way, all other things being equal Performance matters, and that will vary depending on the fund or ETF you invest in
A cheap investment is Vanguard’s main selling point, but it’s not the only selling point Here are a few more favorable aspects to give you an idea of why you might want to invest with Vanguard:
Here’s the thing: Vanguard isn’t for everyone It’s for buy and hold investors, not active traders or day traders If you’re looking for active trading platforms, there are plenty of better options out there.
Vanguard’s trading app is also no-frills when it comes to research But there is a lot of information about mutual funds and ETFs available on reputable financial websites all over the web There is little reason to pay expense report premium for bells and whistles like great platform research Remember what matters most is maximizing the return on your investment and not paying outrageous fees
Of course, as with any investment when you are a self-directed investor, you should definitely do your homework.If you are considering buying a particular fund or ETF, research it Find out the associated costs and expenses Look at its overall performance Make sure it’s the right investment at the right time for you
To sum up this review, I want to point out that Vanguard is at the top of the rankings for low cost buy and hold mutual funds and ETFs. This is where I hide the majority of my retirement money myself And if you are considering investing with Vanguard it has a lot to offer
Of course, you will always have to do your investing homework.Being an informed investor is one of the most important things you can do when investing in anything.This is why we created Investment U, in fact
Vanguard has been a mainstay in the industry for decades now, and they are still at the top to this day.I give them five stars and encourage you to look into their financial products
Brian M Reiser holds a Bachelor of Science in Management with a concentration in Finance from the School of Management at Binghamton University
He also holds a BUNE in Philosophy from Columbia University and a MUNE in Philosophy from the University of South Florida
The Vanguard Group, investment fund, mutual fund, Sprucegrove Investment Management Ltd
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