This was posted 3 years 4 months 2 days ago, and might be an out-dated deal.

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Vanguard Personal Investor Cash, Managed Funds and ETF Account Fees Reduced to 0% (Was 0.20% p.a.) @ Vanguard

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Vanguard Personal Investor Cash, Managed Funds and ETF Account Fees Reduced to 0% (Was 0.20% p.a.) @ Vanguard
Go to Deal
USER DC on 20/08/2021 - 16:12 vanguard.com.au (2514 clicks)
Last edited 21/08/2021 - 01:48 by 2 other users
New Account Fee effective 18 August 2021 Account Fee until 17 August 2021 incl.
Vanguard Cash Account Nil 0.20% per annum
Vanguard managed funds Nil 0.20% per annum
Vanguard ETFs Nil 0.20% per annum
ASX direct shares 0.10% per annum 0.20% per annum
New Brokerage Fee effective 18 August 2021 Brokerage Fee until 17 August 2021 incl.
Vanguard ETFs $9 per trade Nil
ASX direct shares $9 per trade $19.95 or 0.15% per trade (whichever is greater)
Vanguard managed funds Nil Nil

I am a pretty newbie to investing. (NOT A FINANCIAL ADVISOR, NOR RELATED TO VANGUARD OR ANY OTHER COMPANY)
I AM NOT TO BE HELD RESPONSIBLE IF YOU LOOSE MONEY BY INVESTING, I AM NOT YOUR FINANCIAL ADVISOR.

So far have learnt from internet ETF's and index funds are good, as they get expose to a lot of companies.

From my person experience I have found Spaceship to be the best of all investment types, (I have only used Uphold-Crypto, SpaceShip, Commsec, Stake)

Uphold is a scam company doesn't care about customer loosing their money, Uphold infact supports scammers in a way. So never really used their platform since then, They are a total scam company in my PERSONAL opinion.

Commsec is too expensive in fees.

And Stake also CLAIMS 0% fees, but in reality ALWAYS CHARGED ME EXTRA on market prices, than what it said on there website, so still a false statement. And I have only lost money using Stake, their free stock is BS as well, they will give you like a $0.01-$10 worth of stock.

AND a lot of people recommend Vanguard Products, especially stuff like VOO, VDHG.

I plan to use their platform, now given they are now making the account fees as 0%, BUT some fees still apply such as

ASX direct shares- 0.10% per annum
Vanguard ETFs- $9 per trade
ASX direct shares- $9 per trade

However the Investment Management fees applies

Additionally all investment options are here

I think i will go with their Vanguard managed funds with lowest fees

Upside for doing investment with Vanguard directly is Direct debit, aka regular investments, and can invest with Bpay (so may be able to use Credit cards to fund investment)

Downside- Investment management fee, NO CHESS SPONSORSHIP

Financial Investment

Related Stores

Vanguard Australia
Vanguard Australia

closed Comments

                  • Sweetnsour on 20/08/2021 - 19:28
                    +2

                    @USER DC: Why keep it in westpac savings account? I wouldn’t just bought westpac shares. Their dividend yield is 4-6%pa. Not to mention additional 8.5%pa growth in your shares over last 20 years.

                    Riskier? Yes but it’s not that much riskier than using their savings account.

                    Note. Past performance is no guarantee of future performance.

          • imcjb on 20/08/2021 - 18:11
            +4

            @USER DC: I think it's an ISSUE if you think $5 every $500 is 10%…..

          • treekangagaroo on 20/08/2021 - 18:50

            @USER DC: $5 every $500 is 10%.

            Its is 1%

            I see this was picked up before and I was late to the party lol

        • vrb on 20/08/2021 - 20:20

          What about superhero? Zero for ETFs and no holding fee.

          • ely on 24/08/2021 - 23:36
            -1

            @vrb: Some people really have a hard on for CHESS sponsorship.

  • Brucegonemad on 20/08/2021 - 16:53
    +7

    I LOVE CAPS LOCK

  • johnyBgood on 20/08/2021 - 16:56
    +3

    Review here for anyone interested: https://sustainable-living.blog/2020/11/03/vanguard-personal…

  • HolyCr4p on 20/08/2021 - 16:56

    Can they return my money if i dont get profit?

  • joeyy17 on 20/08/2021 - 16:58
    +1

    So how do you LOOSE money im interested

    • plmko on 20/08/2021 - 17:07
      +2

      When you head down Maccas for the Loose change menu.

  • greatlamp on 20/08/2021 - 16:58
    +5

    They only real value is if you wish to buy into Vanguard managed funds.

    Pro
    - You can buy into Vanguard managed funds with no transaction fees / brokerage. Useful if you wish to make many small purchases throughout the year.

    There is a larger range of managed funds than ETFs, not all managed funds are available as an ETF.

    • You can buy Vanguard ETF products for a relatively low brokerage ($9). (Selfwealth charges $9.50, not a big saving)

    Con
    - Not suitable for purchasing any other ASX shares/ETFs, 0.10% per annum holding fee.

    • purchasing managed funds in general isn't the best idea - ETFs have lower fees than the equivalent Managed Fund.

    Compare VAS:
    https://www.vanguard.com.au/personal/products/en/detail/8205…

    And the managed fund:
    https://www.vanguard.com.au/personal/products/en/detail/8100…

    I would recommend it to someone investing small amounts (<$5000) as transaction fees outweigh the small management fee, it would be ideal for children/young adults. Unfortunately they haven't made it easy to open an account in trust for a child.

    • Daniel Plainview on 20/08/2021 - 17:28
      +3

      +1 to this.

      I own quite a lot of Vanguard ETFs and IIRC there's no real benefit to buying the managed funds - and as stated the manage fees on them are higher.

      So unless you're after some of the really niche funds that aren't also ETFs I see no real upside to this….especially an annual fee on ASX direct shares - thats ridiculous.

      No deal there IMHO - better options available via other place though I won't neg the deal as it has upside for a small number of folks.

    • samyall on 20/08/2021 - 19:01

      Definitely agree.

      This move has made Vanguard less competitive in my books.

      I got a Vanguard account as trading ETFs for free made investing really easy (and with the 0.2% fee you were better off if you made quite a few trades a year e.g. dollar cost averaging). Now it is basically the same as Self Wealth minus US shares.

      I will keep my account though as CGT will hurt me and I will put more money into my managed funds.

  • Snatcher on 20/08/2021 - 17:00
    +2

    Still waiting for Vanguard to open up Super in Australia, would certainly jump ship.

    • LakeVostok on 20/08/2021 - 17:03
      +1

      In the interim, u should look into Hostplus Indexed Balanced Fund!

      • DingoBilly on 20/08/2021 - 17:08

        I believe this is out-performed (at least over last few years) by AusSuper's ETF offering.

        Hostplus has the lowest fees but the performance on it hasn't been that good.

        • Swiftz on 20/08/2021 - 17:28
          +5

          RiverSong probably read Barefoot's book and hasn't looked into other super funds since…

          • elease on 20/08/2021 - 21:29

            @Swiftz: Which AusSuper ETF offering is referenced here?..

            I do not think AusSUper has exactly the same option as HOSTPLUS Index Balanced.. Index Balanced is not an ETF at all so why is it compared to AusSuper ETFs?..

            AusSuper has Indexed Diversified, which is a different composition of growth/defensive allocation than HOSTPLUS Index Balanced.

            If you talk about ETFs then you need to use AusSuper Self-managed option, which comes at a $395 annual fee and 0.12% pa of the balance, on top of whatever ETF fees you have.

            Newbie myself but I think HOSTPLUS is interesting with its options to put super into indexed funds of your preferred composition. Not a lot of diversity but you can set you ratio of ASX200 / Vanguard International / Barclays Global Aggregate bond index / Bloomberg AusBond Compsite and all that at lowest fees on the market (provided your balance is $70K+).

        • elease on 20/08/2021 - 21:36

          HOSTPLUS Index Balanced is built with specific goal in mind and the goal is not to ensure it beats some random ETF. It will quite likely lose significantly to, lets say VDHG, over long run. However, it is will definitely have significantly lower volatility. So, for a person how is looking for less volatile strategy, HOSTPLUS Index Balanced offers a very low cost solution.

          Again, 5c from a noob. And by no means I am trying to say HOSTPLUS Index Balanced is not a very risky option, with 32% in ASX and 43% in other developed markets, it will be a hell of a run at some points of time in the future. :)

      • Daniel Plainview on 21/08/2021 - 08:28
        +2

        Hostplus is actually excellent - I strongly recommend going with the individual fund manager options for the best balance of investment options & ability to access lowest possible % fees.

        Hostplus themselves have very low member fees - $78/yr each member flat fee IIRC.

        I personally am not in indexed balanced (as i feel it's too heavily weighted to Oz assets) - but it's 0.02%p.a - which is pretty hard to beat.
        https://hostplus.com.au/super/what-you-need-to-know-about-su…

        FWIW I have a combo of Intl Shares Indexed Hedged and Unhedged with a small amount of IFM Aus Shares.

        I know the temptation is to look at the last 5yrs performance etc and say this fund outperformed that one so I'll go with the best one - but repeat performance is so tricky, so going with a fund who's strategy aligns with your investment timeline that also low fee will (IMHO) give top tier results. And resist the temptation to chop and change it too often or to try and 'time' the market.

    • neil on 20/08/2021 - 17:06
      +1

      You can invest in ETFS (e.g. Vanguard) and other stocks as part of some super funds. Australian Super can do it but $395 annual fee so depends on how much you are willing to invest.

    • nonpop on 20/08/2021 - 17:57

      Add in REST index funds. Apart from trivial account fees, no other fees (small buy sell spread as all funds will have).

    • sav11 on 21/08/2021 - 23:26
      +1

      Just get Vanguard's funds in SunSuper https://forums.whirlpool.net.au/thread/3kwnw4p3

  • Cho0028 on 20/08/2021 - 17:01
    +2

    FYI for those who intend to use Vanguard Personal Investor, the ETFs you purchase are held in a trust with JP Morgan so you won't get a HIN.

  • LakeVostok on 20/08/2021 - 17:01

    I am a huge fan of Vanguard. As a small investor, I enjoy the perks of Vanguard Personal Investor Account i.e. buy ASX shares and Vanguard ETF and Managed Fund shares and gain access to local and international markets without huge brokerage fees and without supporting crooks like CBA.

  • TrafalgarSean on 20/08/2021 - 17:02
    +4

    Can I use it to buy GME? I just like the stock.

  • andresampras on 20/08/2021 - 17:11
    +5

    I am a pretty newbie

    OP do your good looks improve this deal?

  • bargainatoraah on 20/08/2021 - 17:12
    +1

    Wait for the crash, t-23

  • T-man on 20/08/2021 - 17:15
    +1

    Stake is aussie robinhood, they get paid for order and flow and charge fx fee when converting back to AUD.

    At the moment, Charles Schwab is my best choice, anyone knows if Vanguard is similar or better Schwab? Thanks.

  • idonotknowwhy on 20/08/2021 - 17:16
    +6

    Go with self wealth.
    $9.50 per trade for AU shares/etfs
    US$9.50 per trade for US shares/etfs
    CHESS for AU
    Grab a random ozbargain referral and get 5 free trades.

  • rektrading on 20/08/2021 - 17:17

    There is no such thing as zero trading fees. The broker either sells the order flow to a frontrunner, take their cut from the spread, charge high annual fees or all of the above.

    Btw Someone please name the best performing ETF 2020/21.
    Thanks.

  • luckyang on 20/08/2021 - 17:21
    +1

    I can not see any benefit to join Vanguard account at all. The 0.1% surcharge is very unreasonable, there are some other flat fee share broker on the market and even HIN CHESS sponsored one. Totally say NO to this.

    • mskeggs on 20/08/2021 - 17:58

      These are a holdover from the days before ETFs when the only alternative was a LIC or buying bundles of stocks directly.
      Managed funds allowed you to setup a direct debit to invest with them each month, with low management fees and no brokerage (but usually a spread).

      When stockbrokers charged $80 per trade, this was a sensible option.
      Now, there are a billion ETFs with cheap fees and brokerage approaches zero.
      Managed funds probably still work for some people who want no paperwork etc. and the fees are pretty reasonable for regular small investment like a fixed amount each month.

      • SydBoy on 20/08/2021 - 21:42

        just for knowledge which LIC or Managed fund performed better YoY then VTS/VGS/VDHG/VDGR etc with lower fees?

        Biggest fees issue by vanguard is that they want to discourage people investing in stock but instead divert them to their own product and that is why they are charging 0.1% fees just to park the shares in the account which is ridiculous… ! At the moment best option is selfwealth.. !

  • unhappywizard on 20/08/2021 - 17:25
    +7

    This post is amazing. Does anyone else think op needs to research a tiny bit more before entering Crypto and international equity markets.

  • Xizor on 20/08/2021 - 17:44
    +2

    Just get a Selfweath/similar account and buy whatever ETFs you want once a month or whatever your interval is. Honestly If you can't set and forget buying ETFs you have some legit personal issues you probably need help to address.

  • anglais on 20/08/2021 - 17:50

    Didn't we decide this was nowhere near as good as the old BPAY option?

  • Kiro on 20/08/2021 - 17:52

    Not gonna lie, I thought you were talking about warzone

  • mskeggs on 20/08/2021 - 17:53
    +4

    This thread is a train wreck.
    I always fall for the argument that super funds should give more control to members, but boy, this thread makes me uneasy.

    I’ve taken my lumps as a gullible new investor (Bre-X taught me a lesson and Dotcom boom taught me another) and I reckon about retirement age I’ll be able to beat a growth fund most years for a portion of my funds.
    But the vibe here of tipping cash into unproven assets, expecting 10%+ returns and telegraphing to all and sundry that you don’t know what you are doing is very concerning.
    Vanguard are fine and reputable, but investments like that are outnumbered by others seeking to take you for a ride. Lot’s of comments here can’t tell the difference.

  • Vyxon on 20/08/2021 - 18:00

    Big brain financial advice

  • dsar on 20/08/2021 - 18:01

    This post is… bad.

  • JelIyfish on 20/08/2021 - 18:14
    +2

    Dear financial advisor,
    I sent my last $1 to happy dude.
    Please confirm next steps.

  • donga100 on 20/08/2021 - 18:22
    +2

    You can buy Vanguard ETFs for $5 per trade ($5000 per trade max) through Open Trader. They also don't charge account keeping fees.

    • muwu on 21/08/2021 - 11:00

      CHESS or non-CHESS?

  • SuperScope on 20/08/2021 - 18:30
    +3

    This link may be of interest to you op.

    How to Turn Off Caps Lock

    • muncan on 21/08/2021 - 11:35

      wow, disabling caps lock is a game changer. i will definitely be deploying that around my company next april 1. your comment should be pinned to the top of this deal.

  • treebytheriver on 20/08/2021 - 18:33

    I wanted to invest $500 a month (instead of a mortgage) into an investment account, and was tossing up between ETF's and index funds.
    Ended up going with Colonial First State, which have very low admin fees (for funds that just track the index, which is hard to beat with managed funds anyway).

    0.31% Management Fees with a 0.05% buy sell spread. A $9 brokerage on $500 each time would be a 1.8% hit. So I thought this would be better.

    Does that make sense? Just wanted to make sure I wasn't being totally ripped off.

    • Sweetnsour on 20/08/2021 - 19:16
      +1

      0.31% is good for a managed fund. However is there a performance fee?Managed funds usually have 1% fee. I looked at the CFS funds and couldn’t find one with 0.31% fee, lowest was 0.79%.

      A no frills option would be ETFs via superhero. Zero brokerage for buying ETFs minimum is $100 trades and $5 fee to sell but honestly the sell fee doesn’t matter to anyone that’s in accumulating stage.

      • treebytheriver on 20/08/2021 - 19:32

        Thanks for the info. I think I'll stick with CFS then, as I like the actual set and forget, I haven't looked at it in months.

        There isn't a performance fee, as it just tracks the index, no real managing required. The PDS is here. I'm with the Colonial First State Wholesale Index Global Share
        https://www.cfs.com.au/content/dam/prospects/fs/1/4/fs1492.p…

        • Sweetnsour on 20/08/2021 - 19:58
          +1

          Similar to VGS all world etf at 0.18% management fee. So every $10000, $13 difference. My only concern (long shot) is that CFS could close the fund if it doesn’t make enough money. Closing account is not a problem, it just triggers a CGT event.

          Another minor note is CFS is 58% in North America. VGS is 69% USA.

  • anti-hero on 20/08/2021 - 18:35
    • 0.10% per annum ?
      you can open a trading account with CMC market and they don't charge you account keeping fees
  • burgermaniac on 20/08/2021 - 18:47
    +2

    This post hurt my mind, nothing against Vanguard, but seriously… this post is giving me a massive headache.

    • WhyAmICommenting on 20/08/2021 - 19:03

      It’s probably all the yelling…

      • burgermaniac on 20/08/2021 - 19:05

        There's enough of that at home

  • Appox7 on 20/08/2021 - 19:15

    Superhero is much better, vanguard is set up the same but superhero is free

    • Sweetnsour on 20/08/2021 - 20:21
      +1

      Only difference I see is that with vanguard funds, you can setup auto invest option. This option is good for people that like an “autopilot - set and forget” option.

      Superhero doesn’t have this option.

    • vrb on 20/08/2021 - 20:21

      Yeah. Zero brokerage on ETF and no holding account charges. But I wonder how they make their money.

      • Sweetnsour on 20/08/2021 - 20:24

        I wondered that too. When I asked, their response was essentially a loss leader so that you end up in their superannuation funds and buy/sell other shares.

        But then again look at self wealth, they lost $3.4mil in 2019, lost $2.8mil in 2020. Lost $0.6mil in 2021. FY2021 meant self wealth gained 50k new users. While Commsec FY 2021 gained 233k new users.

      • TomGum on 20/08/2021 - 20:36

        Which one is free? I was checking them out but all have a fee. Maybe I’m looking at the wrong ones?

        • Sweetnsour on 20/08/2021 - 21:05

          All the ETFs I have seen are free buy brokerage. Which ETF did you see on superhero that charge brokerage?

  • TomGum on 20/08/2021 - 20:32
    +1

    As a first timer, what’s the minimum can I invest and on what? I’m just looking for an example so I can test the waters out. Any help would be appreciated.

    • USER DC on 20/08/2021 - 20:55

      https://www.vanguard.com.au/personal/en/our-fees

      According to this initially $500 minimum, That's what I am doing, always a small trial first then go big.

      Vanguard Managed Funds have $0 minimum for regular investments, ASX, and Vanguard EFTs have both $500 minimum regular investments too

      • TomGum on 20/08/2021 - 20:58

        But there is a fee. Investment Management fee?

        • USER DC on 20/08/2021 - 21:00

          Investment management fee depends on your investment type

          https://www.vanguard.com.au/personal/products/en/overview

          I would prefer it because of direct debit regular investments + I only pay on the balance i have invested, unlike a brokerage fee of more than that of annual investment management cost until I learn more about investments

  • trialex on 20/08/2021 - 20:44

    If you are not paying for it, you're not the customer; you're the product being sold.

    • netjock on 20/08/2021 - 21:08

      They got to make money somewhere. Unfortunately most people think finding a free sandwich is giving it to the man, it just turns out they found a poisoned sandwich.

  • SydBoy on 20/08/2021 - 21:31
    +2

    Biggest rip-off in this proposal is that they want to charge people 0.1% fees just to park their shares… lol … i think australian vanguard is run by someone who doesn't deserve warren buffet blessing…. ! Vanguard is known for low fee but then how on earth they can charge fees just to park the shares in the account… !

    If you then read to terms and condition then it says there will be 0.5% fees on cash management (additional)… !

    Better off with selfwealth then this mob… !

    • rmw on 21/08/2021 - 07:20
      +2

      This out of everything, wish I had more than one upvote. No DRP not great either due to not broker sponsored. Also can’t trade non vanguard etf.

  • sam cho on 20/08/2021 - 21:59
    +3

    Superhero, free to buy $5 to sell.
    End of party here guys.

    • Daniel Plainview on 21/08/2021 - 10:59

      +1 Free transfer your holdings to another broker after you buy so you have an individual HIN (more secure than collective/broker supplied one) and then sell with them when you need to, rinse and repeat.

      • muwu on 21/08/2021 - 11:08

        Does this work?

        I opted for SW over Superhero primarily because of CHESS sponsorship (direct ownership).

        (My secondary reasons were that SW had a longer corporate history, and because brokerage is a very small percentage of my ETF buy-in cost base and negligible compared to prospective growth amounts over a long-term investing timeframe).

        As Superhero is non-CHESS and your ownership is via a custody arrangement, does that prohibit you from transferring those holdings away from the custodian?

        • Sweetnsour on 21/08/2021 - 11:28

          Yes you can transfer holdings in and out of the superhero account. No fees. Just paperwork to complete.

          It’s different to spaceship which operates more as a managed fund.

      • vrb on 22/08/2021 - 00:53

        Can you pls elaborate?

  • SuperTight on 21/08/2021 - 00:20

    If I have a commsec account would it be better to use that to buy?

  • E C on 21/08/2021 - 12:13
    +2

    why do people stress on "this is not financial advice, i am not a financial advisor, etc?" .. even my financial advisor says rtfm and i am not responsible for any losses, blah blah .. so why does it even matter?

    • this is us on 22/08/2021 - 09:43
      +2

      Legal protection, to make it clear that you are responsible for your decisions. That's all.

  • Hangryuman on 21/08/2021 - 12:29

    love all the rotflmfao comments

    but sheerisoushly now -

    $9 trade and 0.2%pa account fee - seems to be IF you have a Vanguard Personal Investor account (which I don't)

    if I bought through ComSec I suspect the fee would be similar - but with 0.2% being the trading fee with no annual account fees

    except I pay for my CBA loan account fee including other CBA accounts I think

    I may be wrong - but otherwise it looks like Vanguard is just price matching other offers.

  • Lord Ra on 22/08/2021 - 00:05

    This or Raiz for hands off recurring investments?

    • USER DC on 22/08/2021 - 00:37

      Depend on how much balance you think of keeping in portfolio, VANGUARD is going be very useful for less than $3000 worth of portfolio.
      RAIZ will always take their $5 or whatever their monthly fees is regardless of whatever happens to your portfolio.

      If vanguard portfolio goes down, the respective fees will go down too.

      I personally have never found my raiz to be useful for my personal preferences, their fees are too much in my opinion.

      • Lord Ra on 22/08/2021 - 18:17

        Yea rightoh. I have no idea about who/what/why/when to invest, so I let Raiz do that investing for me and I'm happy to pay them. It's $3.50 pm until you hit the 15k mark. I have over twice of what you've mentioned and going strong. Was wondering if VanGuard gave me the same hands-off approach. :)

  • mousecakes on 22/08/2021 - 14:51
    +1

    I agree with this review on Vanguard:

    https://www.youtube.com/watch?v=cpgCv5zmLv4

    There are better platforms out there if fees are your main concerns.

    • muncan on 22/08/2021 - 15:17

      If only he created an account first so he didn’t have to admit not using their services.
      But his honesty is admirable.
      Disclaimer: I did not like, nor did I subscribe

      • mousecakes on 22/08/2021 - 15:19
        +1

        Oh I follow him but basically the review was due to the updated fee structure.
        Which I have to agree with, the original fee structure was better - which I believe he had an older review for also.

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