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Vanguard Australia

  •   27 October 2022
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Vanguard eliminates brokerage fee for ETF purchases

Melbourne 27 October 2022: Vanguard today announced it will remove the $9 brokerage fee for exchange traded funds (ETF) purchases from 27 October 2022 on the Vanguard Personal Investor platform, and confirmed its plans to introduce a range of new features to the platform as part of its ongoing commitment to provide investors the best chance of investment success.

“We built the Vanguard Personal Investor platform with the aim of changing the way Australians invest, by providing access to our high-quality, low-cost investment products and promoting smart investing strategies,” said Mr Balaji Gopal, Vanguard’s Head of Personal Investor.

“Reducing costs and making investing simple with the aim of passing our investors back more of what their investment earns is in our DNA. We continue to invest in refining and enhancing our offer,” said Mr Gopal.

“Small changes in fees can make a big difference over time, and the removal of the current $9 brokerage fee for all Vanguard ETF purchases is another step in improving the investing experience with Vanguard, and demonstrating our commitment to delivering the best value we can,” said Mr Gopal.

Vanguard also outlined its plans to introduce further new features in the coming months, with work underway to extend the Auto Invest capability to ETFs, introduce Vanguard Personal Investor Kids Accounts, and add Automatic Reinvestment for ETFs to the platform service.

“Our Auto Invest feature is already available investors in our range of managed funds. Analysis shows that Vanguard investors who have adopted that automated feature are more resilient to market volatility, having made the conscious decision to contribute regularly to their investments despite the market’s spikes or dips.

“We hope that by extending this feature to our suite of ETFs, investors will be encouraged to stay the course as they build and diversify their wealth over the long-term, regardless of which investment structure they choose.”

Similar to Auto Invest for managed funds, investors will be able to set up regular investment amounts from $200 either fortnightly, monthly or quarterly, into one or a range of Vanguard ETFs. Auto Invest for ETFs will be available in the coming weeks.

“We’re excited about lowering the cost of investing while launching new features that will support investors in building their long-term wealth and we look forward to providing more specific details in due course,” said Mr Gopal. 

Summary of new brokerage fee structure

Product

Brokerage fee/Fee

Vanguard ETFs (buys)

$0

Vanguard ETFs (sells)

$9

Vanguard managed funds (buy and sells)

$0

ASX direct shares (buys and sells)

$9

*Underlying management expense ratios (MERs) for funds and ETFs remain unchanged.

 

  •   27 October 2022
  •      
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