Holding Vanguard ETFs in Merril Edge (2024)

I have $100k in cash and I want to buy low cost ETFs. My Bogleheads research has led me to think I should put my $100k in VOO (or VTI).

There is currently an offer with Merril Edge where if I deposit 100k, I can get $500 cash bonus. I know this cash bonus is peanuts but hey, a little work for $500 is not bad right?

I would like your opinion on my strategy: I plan to deposit my 100k into my existing Vanguard brokerage account (where I have other Vanguard ETFs). I would buy $100k worth of VOO. Then, I would transfer these to Merril Edge (and some of my other holdings in case my sum dips below 100k). That way I can collect the Merril Edge bonus.

Thoughts? Would I be able to hold VOO (or VTI) in Merril Edge?

My research/understanding says that once I am in Merril Edge, I cannot buy Vanguard ETFs. So, how would I sell my VOO (or VTI) in the future in Merril Edge? Will there be a fee?

02nz wrote: ↑Wed Aug 05, 2020 10:09 pmNot only can you hold VTI, VOO, and every other Vanguard ETF (and pretty much every ETF/stock) at Merrill Edge, you can also buy them at ME without fees (mutual funds like VTSAX are a different story). The current promo is the best I've seen from Merrill Edge, at least in the last few years.

Are there any disadvantages to buying Vanguard ETFs through Merril Edge?

Yep! Heard about this promo through Doctor of Credit

ToniCipriani wrote: ↑Wed Aug 05, 2020 10:11 pm

02nz wrote: ↑Wed Aug 05, 2020 10:09 pmNot only can you hold VTI, VOO, and every other Vanguard ETF (and pretty much every ETF/stock) at Merrill Edge, you can also buy them at ME without fees (mutual funds like VTSAX are a different story). The current promo is the best I've seen from Merrill Edge, at least in the last few years.

Are there any disadvantages to buying Vanguard ETFs through Merril Edge?

Yep! Heard about this promo through Doctor of Credit

No disadvantages I can think of.

I hold over $100k in Merrill Edge accounts, and buy and sell VTI all the time (with no fees). It used to be that you had to have a certain account balance for no-fee ETF/stock trades, but I think they did away with those fees for all accounts a year or two ago. So you should be fine just moving over $100k and buying VTI directly through Merrill Edge (and pocketing the bonus).

I don’t know if you have any interest in it, but holding $100k+ in combined BofA/Merrill Edge accounts also gives you access to very generous credit card offers as a “platinum honors” client (or whatever they call it nowadays). You can look it up, but the cash reward card can then give 5.25% on all online purchases including Amazon/Seamless/Etc., and the preferred rewards card works out to blanket 2.625% back on all purchases. There are some other minor benefits related to waiving maintenance fees etc., but the credit card thing has led me to park 100k+ at BofA for years.

Ragnoth wrote: ↑Wed Aug 05, 2020 10:38 pmI hold over $100k in Merrill Edge accounts, and buy and sell VTI all the time (with no fees). It used to be that you had to have a certain account balance for no-fee ETF/stock trades, but I think they did away with those fees for all accounts a year or two ago. So you should be fine just moving over $100k and buying VTI directly through Merrill Edge (and pocketing the bonus).

I don’t know if you have any interest in it, but holding $100k+ in combined BofA/Merrill Edge accounts also gives you access to very generous credit card offers as a “platinum honors” client (or whatever they call it nowadays). You can look it up, but the cash reward card can then give 5.25% on all online purchases including Amazon/Seamless/Etc., and the preferred rewards card works out to blanket 2.625% back on all purchases. There are some other minor benefits related to waiving maintenance fees etc., but the credit card thing has led me to park 100k+ at BofA for years.

Yep I'm aware! I'm also not a BoA customer now. So I hope with my Merril Edge account, it will help me get targeted for some BoA invite only offers that they have for existing customers. (like the BoA 300 checking offer, but I don't have my hopes up)

02nz wrote: ↑Wed Aug 05, 2020 10:09 pmNot only can you hold VTI, VOO, and every other Vanguard ETF (and pretty much every ETF/stock) at Merrill Edge, you can also buy them at ME without fees (mutual funds like VTSAX are a different story). The current promo is the best I've seen from Merrill Edge, at least in the last few years.

A tougher question that maybe you know the answer, can we transfer vanguard tax exempt muni bond funds like VWIUX to ME and hold them there?

A time to EVALUATE your jitters: | viewtopic.php?p=1139732#p1139732

OP,

It works very well. I have part of my portfolio at Merrill Edge and have taken advantage of buying/selling Vanguard ETFs without any issues. I did get a bonus and have taken advantage of some BoFA Reward offers.

Service has been fine although I like the Fidelity Online experience much better.

WoodSpinner

EnjoyIt wrote: ↑Wed Aug 05, 2020 10:52 pm

02nz wrote: ↑Wed Aug 05, 2020 10:09 pmNot only can you hold VTI, VOO, and every other Vanguard ETF (and pretty much every ETF/stock) at Merrill Edge, you can also buy them at ME without fees (mutual funds like VTSAX are a different story). The current promo is the best I've seen from Merrill Edge, at least in the last few years.

A tougher question that maybe you know the answer, can we transfer vanguard tax exempt muni bond funds like VWIUX to ME and hold them there?

I transferred VWIUX there last month. Sadly, I can’t buy more there. I have to buy at Vanguard and then transfer it over.

Anyone knows if you are waiting on payout for the $900 CMA offer from last month, can you also do this for the IRA? I know this promo’s terms say you can have one of each, but is having two promos an issue? Payout for last month’s is 90 days, so it will be over two more months before I get that credit.

BrandonBogle wrote: ↑Wed Aug 05, 2020 11:41 pmAnyone knows if you are waiting on payout for the $900 CMA offer from last month, can you also do this for the IRA? I know this promo’s terms say you can have one of each, but is having two promos an issue? Payout for last month’s is 90 days, so it will be over two more months before I get that credit.

Yes you can do this for the IRA. Even for the same promo you can get it once for a taxable (CMA) account and once for IRA.

Pessimist55 wrote: ↑Wed Aug 05, 2020 10:41 pmIt's a MAJOR PITA To liquidate fractional shares at ME. Don't do DRIP!

How so? AFAIK the fractional share liquidates automatically several days later if you sell all your whole shares of a position.

02nz wrote: ↑Thu Aug 06, 2020 12:11 am

BrandonBogle wrote: ↑Wed Aug 05, 2020 11:41 pmAnyone knows if you are waiting on payout for the $900 CMA offer from last month, can you also do this for the IRA? I know this promo’s terms say you can have one of each, but is having two promos an issue? Payout for last month’s is 90 days, so it will be over two more months before I get that credit.

Yes you can do this for the IRA. Even for the same promo you can get it once for a taxable (CMA) account and once for IRA.

For the same promo I know I’m good. Was curious since this would have a different promo code. But I guess each promo would be tied to only one account.

BrandonBogle wrote: ↑Thu Aug 06, 2020 7:04 am

02nz wrote: ↑Thu Aug 06, 2020 12:11 am

BrandonBogle wrote: ↑Wed Aug 05, 2020 11:41 pmAnyone knows if you are waiting on payout for the $900 CMA offer from last month, can you also do this for the IRA? I know this promo’s terms say you can have one of each, but is having two promos an issue? Payout for last month’s is 90 days, so it will be over two more months before I get that credit.

Yes you can do this for the IRA. Even for the same promo you can get it once for a taxable (CMA) account and once for IRA.

For the same promo I know I’m good. Was curious since this would have a different promo code. But I guess each promo would be tied to only one account.

They have also increased the bonus to $1,000 and for that increase extended the holding period by another 90 days. It's not an either or. The $900 promo is no longer available as far as I can tell. If you don't like the additional 90 day hold, you can take the straight up $600 bonus instead.

You should also read this to maximize the income from your relationship with BofA: https://frugalprofessor.com/best-credit ... 9-edition/

MikeG62 wrote: ↑Thu Aug 06, 2020 8:40 am

BrandonBogle wrote: ↑Thu Aug 06, 2020 7:04 am

02nz wrote: ↑Thu Aug 06, 2020 12:11 am

BrandonBogle wrote: ↑Wed Aug 05, 2020 11:41 pmAnyone knows if you are waiting on payout for the $900 CMA offer from last month, can you also do this for the IRA? I know this promo’s terms say you can have one of each, but is having two promos an issue? Payout for last month’s is 90 days, so it will be over two more months before I get that credit.

Yes you can do this for the IRA. Even for the same promo you can get it once for a taxable (CMA) account and once for IRA.

For the same promo I know I’m good. Was curious since this would have a different promo code. But I guess each promo would be tied to only one account.

They have also increased the bonus to $1,000 and for that increase extended the holding period by another 90 days. It's not an either or. The $900 promo is no longer available as far as I can tell. If you don't like the additional 90 day hold, you can take the straight up $600 bonus instead.

Mike, I think you misunderstand my post. I already applied and opened a CMA under the $900 promo and funded it. Just waiting on the 90 days to finish and get payout. What I am unsure is if opening an IRA now under the $1k promo clashes with that promo already “in-flight”. I suspect not, but it isn’t clear-cut.

ToniCipriani wrote: ↑Wed Aug 05, 2020 10:01 pmI have $100k in cash and I want to buy low cost ETFs. My Bogleheads research has led me to think I should put my $100k in VOO (or VTI).

There is currently an offer with Merril Edge where if I deposit 100k, I can get $500 cash bonus. I know this cash bonus is peanuts but hey, a little work for $500 is not bad right?

I would like your opinion on my strategy: I plan to deposit my 100k into my existing Vanguard brokerage account (where I have other Vanguard ETFs). I would buy $100k worth of VOO. Then, I would transfer these to Merril Edge (and some of my other holdings in case my sum dips below 100k). That way I can collect the Merril Edge bonus.

Thoughts? Would I be able to hold VOO (or VTI) in Merril Edge?

My research/understanding says that once I am in Merril Edge, I cannot buy Vanguard ETFs. So, how would I sell my VOO (or VTI) in the future in Merril Edge? Will there be a fee?

Toni, I think you got your original question answered (no fees or commissions for VG ETFs in Merrill Edge).

Given that's the case, it may be easier to transfer your $100k directly from where you have it now (a bank?) into MerrillEdge, rather than deposit $100k into VG first, then buying VOO at VG brokerage first, and then transferring VOO to ME. Depositing $100k directly to ME avoids the possibility that your VOO at VG drops below $100k right before the transfer happens. Just an option to consider...

Not at ME
They liquidate 3rd wed of each month.

Even if you call, they claim they need to find corresponding buyer before they can be liquidated and it's sold at a random price. Multiple calls to force the liquidation. PITA!

02nz wrote: ↑Thu Aug 06, 2020 12:13 am

Pessimist55 wrote: ↑Wed Aug 05, 2020 10:41 pmIt's a MAJOR PITA To liquidate fractional shares at ME. Don't do DRIP!

How so? AFAIK the fractional share liquidates automatically several days later if you sell all your whole shares of a position.

A time to EVALUATE your jitters: | viewtopic.php?p=1139732#p1139732