Fidelity - $7.95 Trades - 25 iShares ETFs Commisson-Free!

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jpsfranks
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Post by jpsfranks »

natureexplorer wrote:I am surprised about the excitement about free iShares trades among Bogleheads. Not a single of those iShare ETFs is the cheapest in its asset class. You will pay later if you buy iShares at Fido, but you will pay.
Actually going by expenses alone the iShares offered commission free seem reasonably competitive with Vanguard's offerings with the notable exception of EM. Can't speak to other factors (liquidity, tax efficiency, etc.). Threw this together quickly, apologize for any mistakes.


<TABLE> <TR> <TD>Total Market</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>Russell 3000</TD> <TD>IWV</TD> <TD>0.21</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VTI</TD> <TD>0.09</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VTSMX</TD> <TD>0.18</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VTSAX</TD> <TD>0.09</TD> </TR> <TR> <TD>S&P 500</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P 500</TD> <TD>IVV</TD> <TD>0.09</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VFINX</TD> <TD>0.18</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VFIAX</TD> <TD>0.09</TD> </TR> <TR> <TD></TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD>Large Cap</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>Russell 1000</TD> <TD>IWB</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VV</TD> <TD>0.13</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VLACX</TD> <TD>0.26</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VLCAX</TD> <TD>0.15</TD> </TR> <TR> <TD>Large Cap Value</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P 500 Value</TD> <TD>IWD</TD> <TD>0.2</TD> </TR> <TR> <TD></TD> <TD>Russell 1000 Value</TD> <TD>IVE</TD> <TD>0.18</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VTV</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VIVAX</TD> <TD>0.26</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VVIAX</TD> <TD>0.15</TD> </TR> <TR> <TD>Large Cap Growth</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P 500 Growth</TD> <TD>IVW</TD> <TD>0.18</TD> </TR> <TR> <TD></TD> <TD>Russell 1000 Growth</TD> <TD>IWF</TD> <TD>0.2</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VUG</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VIGRX</TD> <TD>0.28</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VIGAX</TD> <TD>0.15</TD> </TR> <TR> <TD>Mid Cap</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P Mid Cap 400</TD> <TD>IJH</TD> <TD>0.21</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VO</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VIMSX</TD> <TD>0.27</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VIMAX</TD> <TD>0.15</TD> </TR> <TR> <TD>Mid Cap Value</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P Mid Cap 400 Value</TD> <TD>IJJ</TD> <TD>0.28</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VOE</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VMVIX</TD> <TD>0.3</TD> </TR> <TR> <TD>Mid Cap Growth</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P Mid Cap 400 Growth</TD> <TD>IJK</TD> <TD>0.25</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VOT</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VMGIX</TD> <TD>0.3</TD> </TR> <TR> <TD>Small Cap</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P Small Cap 600</TD> <TD>IJR</TD> <TD>0.2</TD> </TR> <TR> <TD></TD> <TD>Russell 2000</TD> <TD>IWM</TD> <TD>0.24</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VB</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>NAESX</TD> <TD>0.28</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VSMAX</TD> <TD>0.15</TD> </TR> <TR> <TD>Small Cap Value</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P Small Cap 600 Value</TD> <TD>IJS</TD> <TD>0.25</TD> </TR> <TR> <TD></TD> <TD>Russell 2000 Value</TD> <TD>IWN</TD> <TD>0.33</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VBR</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VISVX</TD> <TD>0.28</TD> </TR> <TR> <TD>Small Cap Growth</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>S&P Small Cap 600 Growth</TD> <TD>IJT</TD> <TD>0.25</TD> </TR> <TR> <TD></TD> <TD>Russell 2000 Growth</TD> <TD>IWO</TD> <TD>0.25</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VBK</TD> <TD>0.15</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VISGX</TD> <TD>0.28</TD> </TR> <TR> <TD>Total World</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>MSCI ACWI</TD> <TD>ACWI</TD> <TD>0.35</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VT</TD> <TD>0.3</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VTWSX</TD> <TD>0.5</TD> </TR> <TR> <TD>EAFE</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>MSCI EAFE</TD> <TD>EFA</TD> <TD>0.35</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VEA</TD> <TD>0.16</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VDMIX</TD> <TD>0.29</TD> </TR> <TR> <TD>International Small Cap *(EAFE vs. ex-US)</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>EAFE Small Cap</TD> <TD>SCZ</TD> <TD>0.4</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VSS</TD> <TD>0.55</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VFSVX</TD> <TD>0.78</TD> </TR> <TR> <TD>Emerging Markets</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>MSCI Emerging Markets</TD> <TD>EEM</TD> <TD>0.72</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>VWO</TD> <TD>0.27</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VEIEX</TD> <TD>0.39</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VEMAX</TD> <TD>0.27</TD> </TR> <TR> <TD>Total Bond Market</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>Barclays Aggregate Bond</TD> <TD>AGG</TD> <TD>0.24</TD> </TR> <TR> <TD></TD> <TD>ETF</TD> <TD>BND</TD> <TD>0.14</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VBMFX</TD> <TD>0.22</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VBTLX</TD> <TD>0.14</TD> </TR> <TR> <TD>TIPS</TD> <TD></TD> <TD></TD> <TD></TD> </TR> <TR> <TD></TD> <TD>TIPS Bond</TD> <TD>TIP</TD> <TD>0.2</TD> </TR> <TR> <TD></TD> <TD>Investor</TD> <TD>VIPSX</TD> <TD>0.25</TD> </TR> <TR> <TD></TD> <TD>Admiral</TD> <TD>VAIPX</TD> <TD>0.12</TD> </TR></TABLE>
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amp
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Post by amp »

indexfundfan wrote:
Fbone wrote:
FD wrote: So the question is still unanswered...how many other discount brokers have 180 days and $75 fee for short term trading?
I didnt realize there was a big need to sell mutual funds after 3 months.
You would if you are tax-loss harvesting. This was especially true last year.
I'm curious which Boglehead-friendly funds have a 180 day redemption period. The mutual funds I generally hold at Fidelity are the Spartan funds, all of which, I believe, have a 90 day holding period.

Even then, I would prefer to use an ETF for TLH, as then you can buy back your original fund within a month's time, rather than waiting for an additional two months.
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Fbone
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Post by Fbone »

indexfundfan wrote:
You would if you are tax-loss harvesting. This was especially true last year.
Ok, thanks. I didnt have any losses so taxes didnt enter my mind.
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SpringMan
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Post by SpringMan »

jpsfranks,
Thanks for summarizing the costs of the Fidelity free traded iShares ETFs vs the Vanguard options. I updated my spreadsheet that I keep yesterday going through the same exercise. I verified my spreadsheet against your posted values and they match and look correct. SCZ is very competitive for small foreign and I am considering this ETF in my Fidelity account.
Best Wishes, SpringMan
stan1
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Post by stan1 »

Oh Vanguard, when will you offer no commission trades on your own ETFs at your own brokerage (VBS)????
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jmourik
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Post by jmourik »

stan1 wrote:Oh Vanguard, when will you offer no commission trades on your own ETFs at your own brokerage (VBS)????
I asked them yesterday and for now they say they believe their pricing is very competitive and serves the best interest of their clients...

Pricing: http://www.vanguard.com/pdf/v414.pdf
Tramper Al
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Post by Tramper Al »

amp wrote:I'm curious which Boglehead-friendly funds have a 180 day redemption period. The mutual funds I generally hold at Fidelity are the Spartan funds, all of which, I believe, have a 90 day holding period.
Right, well it depends what you consider Boglehead-friendly, I suppose. If you have not run into this issue, well good for you. It does not mean it does not exist or is not an annoyance for others sometimes.

I think you get into the 180-day thing with many (all?) of the non-Fidelity NTF funds. So this might be for example: PCRDX - the PIMCO CCF. I think it would apply basically for any mutual fund where you are NOT paying that $75 transaction fee. The irony is, though, that the NTF funds tend to have higher ERs (like PCRDX vs. PCRIX, for example), so you are already paying for the NTF. But if you want to sell any of the fund in <180 days, you will pay even more.

Day traders only? Hardly. Just look back at 2008-2009, and there were many many times that a prudent practitioner of loss harvesting or rebalancing could have run into this. Assets like EM, REITs, Treasuries, you name it, have had some very wide swings.

In terms of the Spartans, I think the Treasury funds and the S&P 500 do not have the 90-day restriction. They fall back to the default 30 day "round trip" rules at Fidelity that apply to all funds.

I use the Spartans in a 403b, and NTF funds rarely in our IRAs. For that I just have to keep notes about the various restrictions and fees for various funds, and check and recheck for accuracy anytime I contemplate a transaction.
jmourik wrote:
stan1 wrote:Oh Vanguard, when will you offer no commission trades on your own ETFs at your own brokerage (VBS)????
I asked them yesterday and for now they say they believe their pricing is very competitive and serves the best interest of their clients...

Pricing: http://www.vanguard.com/pdf/v414.pdf
How shocking! Should we expect them to say otherwise? As in, our prices are too high and are not in the best interest of you the customer?
TheEternalVortex
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Post by TheEternalVortex »

Code: Select all

Total Market 
    Russell 3000        IWV     0.21
    ETF                 VTI     0.09
    Investor            VTSMX   0.18
    Admiral             VTSAX   0.09
S&P 500    
    S&P 500             IVV     0.09
    Investor            VFINX   0.18
    Admiral             VFIAX   0.09
Large Cap    
    Russell 1000        IWB     0.15
    ETF                 VV      0.13
    Investor            VLACX   0.26
    Admiral             VLCAX   0.15
Large Cap Value    
    S&P 500 Value       IWD     0.2
    Russell 1000 Value  IVE     0.18
    ETF                 VTV     0.15
    Investor            VIVAX   0.26
    Admiral             VVIAX   0.15
Large Cap Growth    
    S&P 500 Growth      IVW     0.18
    Russell 1000 Growth IWF     0.2
    ETF                 VUG     0.15
    Investor            VIGRX   0.28
    Admiral             VIGAX   0.15
Mid Cap    
    S&P Mid Cap 400     IJH     0.21
    ETF                 VO      0.15
    Investor            VIMSX   0.27
    Admiral             VIMAX   0.15
Mid Cap Value    
    S&P MC 400 Value    IJJ     0.28
    ETF                 VOE     0.15
    Investor            VMVIX   0.3
Mid Cap Growth    
    S&P MC 400 Growth   IJK     0.25
    ETF                 VOT     0.15
    Investor            VMGIX   0.3
Small Cap    
    S&P Small Cap 600   IJR     0.2
    Russell 2000        IWM     0.24
    ETF                 VB      0.15
    Investor            NAESX   0.28
    Admiral             VSMAX   0.15
Small Cap Value    
    S&P SC 600 Value    IJS    0.25
    Russell 2000 Value  IWN    0.33
    ETF                 VBR    0.15
    Investor            VISVX    0.28
Small Cap Growth    
    S&P SC 600 Growth   IJT    0.25
    Russell 2000 Growth IWO    0.25
    ETF                 VBK    0.15
    Investor            VISGX  0.28
Total World    
    MSCI ACWI           ACWI   0.35
    ETF                 VT     0.3
    Investor            VTWSX  0.5
EAFE    
    MSCI EAFE           EFA    0.35
    ETF                 VEA    0.16
    Investor            VDMIX  0.29
International Small Cap *(EAFE vs. ex-US)    
    EAFE Small Cap      SCZ    0.4
    ETF                 VSS    0.55
    Investor            VFSVX  0.78
Emerging Markets    
    MSCI EM             EEM    0.72
    ETF                 VWO    0.27
    Investor            VEIEX  0.39
    Admiral             VEMAX  0.27
Total Bond Market    
    Barclays Agg. Bond  AGG    0.24
    ETF                 BND    0.14
    Investor            VBMFX  0.22
    Admiral             VBTLX  0.14
TIPS    
    TIPS Bond           TIP    0.2
    Investor            VIPSX  0.25
    Admiral             VAIPX  0.12 
natureexplorer
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Post by natureexplorer »

mattsm wrote:
natureexplorer wrote:I am surprised about the excitement about free iShares trades among Bogleheads. Not a single of those iShare ETFs is the cheapest in its asset class. You will pay later if you buy iShares at Fido, but you will pay.
Some of those are decent for people with Fidelity accounts and smaller balances. It costs $75 round trip to buy VG mutual funds and the ETF TIP is not available in a Vanguard version.

Bottom line, at some point you need to do the math and see what works for you. Otherwise its great for people starting off.

Also, they did lower the cost too from up to $19.95 (I was at 10.95) per trade down to $7.95. I'll take that....
Okay, I see the point about the smaller balances, but it still makes me wonder. If your balance is below $25k (in which case "Wells Fargo's everything is free" might not be optimal), is investing in Vanguard mutual funds directly at Vanguard not cheaper? From that list above that jpsfranks posted comparing the iShares ETF ERs with those of Vanguard, it seems like in several instances even the Vanguard mutual fund investor shares are cheaper. I wouldn't be surprised if many portfolios would have an overall very similar if not lower ER when composed of Vanguard mutual funds in investor shares instead of with iShares. Where Vanguard mutual fund investor shares are cheaper than iShares ETFs happen to be asset classes that might be key for someone in the early accumulation phase like Total Market, Small Cap Value (compared to IWN), EAFE, Emerging Markets, and Total Bond. And if you want more, the investor shares ERs are still very similar.

Now if your balance is too low for the Vanguard fund minima, I guess having access to those iShares is a pretty sweet deal with which probably only Schwab can compete (and Schwab might win - I don't know).
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Kenster1
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Post by Kenster1 »

So now at Fidelity you can do the following all commission free:

10:30am: iShares S&P Midcap Value down 1.8% -- BUY ORDER!

10: 44am: IShares S&P Large Value down 1.95% -- BUY ORDER!

12:40pm: IShares S&P Midcap Value down 2.3% -- Another BUY ORDER!

12:50pm: iShares S&P Small Value down 2.1% -- BUY ORDER!

1:30pm: iShares S&P Small Value down 2.95% --- Another BUY ORDER!

1:45pm: iShares S&P 500 down 3.01% -- BUY ORDER!

3:00pm: S&P500 index back up positives news on AIG and the Banking Sector -- index down only 0.2% for the day. HOLD. Sit back & relax.

4:00pm: S&P500: -0.18%

=====

But it'll be interesting to see how this new commission-free plan further improves trading and volume because it will in turn help to improve on the bid/ask spreads. A number of the iShares ETFs already have much much higher volume than the Vanguard ETFs.

For example: The iShares Russell Midcap Value ETF has an avg daily volume of 1.9M versus just 167k for Vanguard Midcap Value ETF.
Last edited by Kenster1 on Wed Feb 03, 2010 10:53 am, edited 2 times in total.
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
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amp
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Post by amp »

Tramper Al wrote:
amp wrote:I'm curious which Boglehead-friendly funds have a 180 day redemption period. The mutual funds I generally hold at Fidelity are the Spartan funds, all of which, I believe, have a 90 day holding period.
Right, well it depends what you consider Boglehead-friendly, I suppose. If you have not run into this issue, well good for you. It does not mean it does not exist or is not an annoyance for others sometimes.
I wasn't trying to suggest that the issue was unimportant. My question was genuine. I am curious if there are any funds that I may want to hold in the future that would be affected by the extended holding period. The Pimco bond funds are a good example. Most people would probably hold those in tax-advantaged accounts, where TLH isn't an issue, although rebalancing might be.
Tramper Al wrote: Day traders only? Hardly. Just look back at 2008-2009, and there were many many times that a prudent practitioner of loss harvesting or rebalancing could have run into this. Assets like EM, REITs, Treasuries, you name it, have had some very wide swings.
I'm unsure to what you're referring. I never said that only day traders cared about the redemption period.
Tramper Al
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Post by Tramper Al »

amp wrote:
Tramper Al wrote: Day traders only? Hardly.
I'm unsure to what you're referring. I never said that only day traders cared about the redemption period.
Not you. But these "short-term" 1 to 6 month range trading penalties and restrictions are very often defended, by both mutual fund companies and unaffected investors, as being a necessary deterrent to disruptive frequent traders. That's all.
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tarnation
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Post by tarnation »

Just to be sure, I didn't see any specification of what type orders, does this mean free limit orders for ishares?
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Tramper Al
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Post by Tramper Al »

tarnation wrote:Just to be sure, I didn't see any specification of what type orders, does this mean free limit orders for ishares?
I'd say yes. And I just placed a limit order to buy IJS for you.

On the order confirmation page, there is this:
"Fidelity is pleased to offer this ETF at $0 commission."

as well as Estimated Commission: $0.00, where I am accustomed to seeing $8.00
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simba
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Post by simba »

IndexUniverse has this article - Fidelity’s Free ETF Trading: Bad For Investors
So what is the deal here? Well, it's fairly certain that money's changing hands, and that money is coming directly out of the BlackRock coffers and into the hands of Fidelity. But on what terms?
While the price war is good news if you’re a hyperactive trader, I believe it’s actually bad news for long-term investors. Whatever BlackRock is paying Fidelity to offset trading costs is money that could otherwise be spent to the benefit of long-term investors. One of the great things about ETFs is that they cleanly segregate trading and investing costs. Unlike mutual funds, ETF investors don’t—until now—suffer any ill effects for their funds being heavily traded.
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tarnation
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Post by tarnation »

Tramper Al wrote:
tarnation wrote:Just to be sure, I didn't see any specification of what type orders, does this mean free limit orders for ishares?
I'd say yes. And I just placed a limit order to buy IJS for you.

On the order confirmation page, there is this:
"Fidelity is pleased to offer this ETF at $0 commission."

as well as Estimated Commission: $0.00, where I am accustomed to seeing $8.00
Wow, thanks. When will you be sending my IJS? :D
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simba
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Post by simba »

tarnation wrote:Wow, thanks. When will you be sending my IJS? :D
Tarnation - Expect a personal email such as the following from the Nigerian chamber of Commerce :lol:
LAGOS, NIGERIA.

ATTENTION: THE PRESIDENT/CEO

DEAR SIR,

CONFIDENTIAL BUSINESS PROPOSAL

HAVING CONSULTED WITH MY COLLEAGUES AND BASED ON THE INFORMATION GATHERED FROM THE NIGERIAN CHAMBERS OF COMMERCE AND INDUSTRY, I HAVE THE PRIVILEGE TO REQUEST FOR YOUR ASSISTANCE TO TRANSFER THE SUM OF $500,500,000.00 (FIVE HUNDRED MILLION, FIVE HUNDRED THOUSAND UNITED STATES DOLLARS) INTO YOUR ACCOUNTS. THE ABOVE SUM RESULTED FROM BUYING MULTIPLE ETFs such as IJS FROM FIDELITY WITH NO COMMISIONS, THESE MONIES ARE A RESULT OF THE SAVINGS WE RECEIVED BY NOT PAYING THE COMISSIONS AT FIDELITY. THIS ACTION WAS HOWEVER INTENTIONAL AND SINCE THEN THE FUND HAS BEEN IN A SUSPENSE ACCOUNT AT THE CENTRAL BANK OF NIGERIA APEX BANK.

WE ARE NOW READY TO TRANSFER THE FUND OVERSEAS AND THAT IS WHERE YOU COME IN. IT IS IMPORTANT TO INFORM YOU THAT AS CIVIL SERVANTS, WE ARE FORBIDDEN TO OPERATE A FOREIGN ACCOUNT; THAT IS WHY WE REQUIRE YOUR ASSISTANCE. THE TOTAL SUM WILL BE SHARED AS FOLLOWS: 70% FOR US, 25% FOR YOU AND 5% FOR LOCAL AND INTERNATIONAL EXPENSES INCIDENT TO THE TRANSFER.

-Simba
VennData
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Post by VennData »

I have equity(TSM, VGK, VPL, VWO, and VBR) and VNQ ETFs at VBS, while bond funds (and VINEX) are in mutual funds. So re-balancing can't possibly use up the twelve free trades a year on my five equity ETFs plus VNQ.

The Turbo Tax deal is great and the site is efficient and useful.

My only concern with Vanguard are the same with all the houses, how do they justify reporting avg. cost to the IRS starting in 2011? That's going to mess up anyone (Bogleheads...) who sell specific lots for tax purposes etc.

(Oh ...and they need to make the mutual fund to conversion process cleaner so you're not stuck with fractions of shares.)

Vanguard is everything you need.
Tramper Al
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Post by Tramper Al »

I just bought a little EFA with some spare cash in a Fidelity Roth IRA, just because the day's losses put me under target for equities. Weird. Probably I am just the sort of daily rebalancing wannabe they are looking to reel in.
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indexfundfan
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Post by indexfundfan »

This information might be useful to some of you...

I sent Fidelity an email, asking if they will reimburse the $50 ACAT fee charged by the other broker if I transfer some of my holdings to them. I told them the amount of investment is about $60k.

They replied OK, as long as it is a taxable account (as IRS regulations do not allow them to deposit into IRAs).
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natureexplorer
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Joined: Thu Sep 03, 2009 10:52 am
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Post by natureexplorer »

natureexplorer wrote:
jmourik wrote:Hopefully Vanguard will respond with a similar deal.
Let's hope not because you'd simply be paying for the trades through the ER.
Just came across this:
While the price war is good news if you’re a hyperactive trader, I believe it’s actually bad news for long-term investors. Whatever BlackRock is paying Fidelity to offset trading costs is money that could otherwise be spent to the benefit of long-term investors. One of the great things about ETFs is that they cleanly segregate trading and investing costs. Unlike mutual funds, ETF investors don’t—until now—suffer any ill effects for their funds being heavily traded.

This move to have trading costs essentially covered by ETF expense ratios just tosses mud on what—up until now—had been a very, very clean lens.
http://www.indexuniverse.com/blog/7206- ... 2&Itemid=3
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