Vanguard FAQ

 (frequently asked questions) provides answers to questions regarding Vanguard accounts and Vanguard Brokerage Services.

Why is Vanguard special?
Unlike other investment fund companies, Vanguard is owned by, and thus run entirely for the benefit of, its investors. Partly as a result, Vanguard has very low costs.

From Vanguard's What we offer web page:

The low costs are important because of the power of compounding. Paying 0.2% costs (typical for a Vanguard investor) for 30 years means that you lose 6% of your investment to costs. Paying 1.2% costs (common for many investors) means that you lose 30% to costs.

Are my investments at Vanguard safe?
Vanguard (and every other US-regulated mutual fund company) does not hold funds directly. Funds are held by third party custodians. Investors who remain uncomfortable holding all of their assets in Vanguard may hold their funds with alternative custodians.

What are the benefits of holding large asset balances with Vanguard?
Vanguard offers extended support for clients who hold larger asset balances in their Vanguard accounts:
 * Explore the benefits of investing at Vanguard
 * What you get when you invest up to $1 million (Flagship Services)
 * What you get when you invest between $1 million and $5 million (Flagship Select Services)
 * Wealth management for investors with more than $5 million

Can I tell if a Vanguard fund is going to have a distribution?
Vanguard may provide early announcements of quarterly and year end fund distributions on their website:


 * All Insights - Vanguard Advisors

How can I share access to my Vanguard account with other people?
Visit Vanguard's Forms and Literature page. Open the "Allow others access to view or transact on your accounts" pulldown menu, and navigate to "Allow access to your individual/joint account or IRA or establish power of attorney".

What fees does Vanguard charge, and how can I avoid them?
For a full list of Vanguard's investment fees and costs, see:


 * Investment fees and costs - Vanguard.com

What are the fees for Vanguard Brokerage Services?
For details of the charges specific to Vanguard Brokerage Services, see:


 * Brokerage services commission and fee schedules - Vanguard.com

How do I sell specific shares at Vanguard?
If you sell covered shares of a mutual fund at Vanguard (shares purchased in 2012 or later), and you have chosen specific ID as your accounting method, then you will be given a list of lots at the time you place the request to sell, and you can fill in this list. If you have non-covered shares, there will be only one lot listed (even if you purchased multiple lots), and you will have to identify the shares in a secure Email. If you write a letter to Vanguard to make the sale, you also need to identify the shares in your letter.

For Vanguard Brokerage Services, you will choose an accounting method for each stock or ETF you hold. If you choose Specific ID, you will have to indicate which lots are included in your sale order when you place the order; you may change this before the settlement date. You may also use a method such as HIFO (highest-in, first-out); Vanguard will automatically assign shares to your sale order according to the rules.

Can I buy bonds through Vanguard Brokerage Services? What is the cost?
Vanguard offers two ways to buy bonds through the platform. New issues are purchased directly from the issuer. Secondary trades are purchased from other people who are selling their bonds. Vanguard Brokerage charges an additional $25 broker-assisted fee for secondary trades placed over the phone:


 * Bonds: Diversify Your Portfolio and Earn More - Vanguard.com
 * Brokerage services commission and fee schedules - Vanguard.com