Understanding ETFs
What are ETFs?
ETFs combine the broad diversification of conventional index mutual funds with the continual pricing and
trading flexibility of individual stocks and bonds. ETFs can be purchased only through a brokerage
account and generally offer lower expense ratios than
conventional mutual funds.
Listen to a podcast explaining ETFs
Are ETFs right for you?
An ETF may be appropriate if you:
- Want to buy and sell at prices set throughout the day (instead of the end-of-day price of a traditional mutual fund).
- Understand the risks and spreads involved with investing in the stock and bond markets.
- Want the potential to lower your costs.
Why Vanguard ETFs®?
Investment expertise
Vanguard introduced the first index mutual fund to individual investors in 1976. In the three decades since, we've honed a
strategy for selecting indexes that we believe best represent the target market. Then we try to track those indexes
as closely as possible.
Broad choice
Vanguard offers more than 60 ETFs covering the U.S. and international stock markets as well as the U.S. bond market.
So you can tailor a portfolio that best meets your needs.
No commissions
Vanguard Brokerage clients trade our ETFs commission-free,* another way you can receive more value for your investment.
Low expenses
Other ETFs on average are about three times more expensive than Vanguard's.**
Compare Vanguard ETFs vs. other ETFs
Get a recommendation
Answer a few questions and we'll give you an
ETF recommendation.
Or call us at:
888-992-8327 if you're a Vanguard client
888-241-1395 if you're new to Vanguard
Markets
as of
2/3/2012 11:42 PM
| Indicator | Last | Change |
| DJIA | 12,862.23 | +156.82 |
| NASDAQ | 2,905.66 | +45.98 |
| S&P 500 | 1,344.90 | +19.36 |
| 10-Yr T-Note | 1.95% | +0.12 |
You must buy and sell Vanguard ETF Shares through a broker like Vanguard Brokerage Services (we offer them commission-free) or
through another broker (you may incur commissions). Trading limits, fund expenses, and minimum investments may apply.
See the Vanguard Brokerage Services commission and fee schedules for details. Vanguard ETF Shares are not redeemable
directly with an applicant fund other than in creation unit aggregations. Like stocks, ETFs are subject to market
volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or
less than net asset value.
* Trading limits, fund expenses, and minimum investments may apply. See
the Vanguard Brokerage Services
commission and fee schedules for full details.
** Source: Lipper Inc., as of December 31, 2010. Vanguard's average ETF expense ratio is 0.17%, compared with the industry average of 0.53%.
All investments are subject to risks. Investments in bond funds are subject to interest rate, credit, and inflation risk.
Foreign investing involves additional risks, including currency fluctuations and political uncertainty. Diversification does
not ensure a profit or protect against a loss in a declining market.
Vanguard provides its services to the Vanguard funds and ETFs at cost.
Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, Member FINRA.
