Vanguard, a leading asset and wealth management firm, announced new fees for certain brokerage services this week. The changes, which may encourage clients to opt for online trading, advisory services, or asset accumulation to avoid these charges, will take effect on July 1.
Starting from this date, Vanguard will impose a $25 broker-assisted commission on each trade of Vanguard mutual funds and exchange-traded funds made over the phone. Additionally, a $25 fee will be charged for transactions that close positions to meet a margin call or to settle an outstanding debt in a brokerage account. These fees will be waived for accounts enrolled in a Vanguard-affiliated advisory service or for clients possessing at least $1 million in qualifying Vanguard assets.
Online trades of mutual funds and ETFs will remain commission-free. A Vanguard spokesperson stated, "Vanguard is dedicated to guiding clients towards secure, simpler, and more seamless digital experiences, continuously reviewing our brokerage services and fee structures to enhance client engagement and satisfaction."
Moreover, Vanguard will introduce a $100 processing fee for depositing physical share certificates into brokerage accounts and implement a 1% fee on the gross dividend amount for dividends paid on foreign securities and American Depositary Receipts (ADRs) held in U.S. dollars.
The firm also announced a potential $100 processing fee for account closures or asset transfers to other institutions, which will be waived for clients with over $5 million in qualifying Vanguard assets.
In another update, effective June 1, the tax filing fee for master limited partnerships (MLPs) held in IRAs will increase from $300 to $500 per account.
With assets nearing $9 trillion, Vanguard ranks among the top asset managers in the U.S. and is renowned for its cost-effective index funds. Serving over 50 million investors, Vanguard operates a substantial wealth management division, offering services ranging from a fully digital robo-advisor to a hybrid model that includes human financial advisors.
Earlier this year, Vanguard's CEO, Tim Buckley, announced his intention to retire by year's end. The search is ongoing for his successor at the company’s headquarters in Malvern, Pennsylvania.
