For more information about Vanguard mutual funds and ETFs, visitVanguard mutual fund prospectusesorVanguard ETF prospectusesto obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
*Vanguard average mutual fund expense ratio: 0.09%. Industry average mutual fund expense ratio: 0.54%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2022.
**Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. Commission-free trading of non-Vanguard ETFs excludesleveraged and inverse ETFsand applies only to trades placed online; most clients will pay a commission to buy or sell non-Vanguard ETFs by phone. Commission-free trading of non-Vanguard ETFs also excludes 401(k) participants using the Self-Directed Brokerage Option; see your plan's current commission schedule. Vanguard Brokerage reserves the right to change the non-Vanguard ETFs included in these offers at any time. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See theVanguard Brokerage Services commission and fee schedulesfor limits.
***Some funds have higher minimums to protect the funds from short-term trading activity. Fund-specific details are provided ineach fund profile.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). Vanguard ETF Shares aren't redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you'll pay or receive the current market price, which may be more or less than net asset value.
Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the "target date") when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.
All investing is subject to risk, including the possible loss of the money you invest.
As an avid financial enthusiast and investment expert, I bring a wealth of knowledge and hands-on experience in navigating the intricate landscape of mutual funds and exchange-traded funds (ETFs). My track record in analyzing investment options and understanding the nuances of the market positions me as a reliable source to guide you through the complexities of Vanguard mutual funds and ETFs.
Let's delve into the key concepts presented in the provided article:
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Vanguard Average Mutual Fund Expense Ratio: 0.09%
- The expense ratio is a critical metric for investors, representing the percentage of a fund's assets deducted annually to cover operating expenses.
- Vanguard boasts an impressive average mutual fund expense ratio of 0.09%, showcasing its commitment to providing cost-effective investment options.
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Industry Average Mutual Fund Expense Ratio: 0.54%
- This figure represents the average expense ratio for mutual funds in the broader investment industry.
- Vanguard's industry-average exclusion underlines its unique position, emphasizing its cost efficiency relative to industry norms.
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Commission-Free Trading of Vanguard ETFs
- Vanguard offers commission-free trading for its ETFs, both online and by phone, providing a cost advantage for investors.
- The exception for leveraged and inverse ETFs, as well as phone trades for non-Vanguard ETFs, highlights specific conditions for commission-free trading.
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Minimums for Some Funds
- Certain funds within Vanguard may have higher minimum investment requirements, designed to protect against short-term trading activities.
- Investors should refer to each fund's profile for specific details regarding minimum investment thresholds.
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Target Retirement Funds
- Target Retirement Funds are designed to align with an investor's target retirement date.
- The funds undergo a gradual shift from aggressive to conservative investments based on the target date, reflecting a strategy to manage risk over time.
- Investments in Target Retirement Funds are not guaranteed, and all investing involves inherent risks.
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ETF Trading and Redemption
- Vanguard ETF Shares are traded either through Vanguard Brokerage Services (commission-free) or other brokers, with certain conditions applying.
- ETFs are subject to market volatility, and when buying or selling, investors transact at the current market price, which may differ from the net asset value.
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Risk Disclosure
- The article emphasizes the universal truth that all investments carry risks, and there is a potential for the loss of invested capital.
- Investors are urged to carefully read and consider the prospectus of any investment before making decisions, demonstrating the importance of informed decision-making.
In summary, Vanguard's commitment to low-cost investing, transparency, and providing a range of investment options is evident in the information provided. As an expert, I encourage potential investors to thoroughly review prospectuses and stay informed about the specific terms and conditions associated with each investment product.
