E*TRADE

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E*TRADE Financial Corporation (often referred to as E-Trade) is a large online broker that was founded in 1982.[1]

Boglehead-style investing at E*TRADE

The building blocks of Boglehead-style investing are low-expense-ratio index mutual funds and/or exchange-traded fund (ETFs). Vanguard followers would suggest that Vanguard has the best and most complete lineup of such funds, and that the most convenient place to hold Vanguard mutual funds is directly at Vanguard. Thus, the Bogleheads forum and Wiki tends to be Vanguard-oriented. But, investing according to the Boglehead philosophy certainly does not require you to invest at Vanguard nor use Vanguard products. Here are some notes on how to do it at E*TRADE.

The information below is up-to-date as of May 6, 2018. Writers have striven for accuracy, but investors should verify information before taking action.

Tools for Boglehead-style investing

  • E*TRADE has over 1400 NTF (No Transaction Fee) Mutual Funds, of which 121 have expense ratios under 0.50%.
    • In order to see the NTF Mutual Fund selection, visit this page, then perform a search using the "Expense Ratio <.5%" and "No Load No Transaction Fee" criteria.
    • In order to avoid the $49.99 short-term Mutual Fund trading fee, no shares may be sold for at least 90 days once a customer purchases a commission-free NTF Mutual Fund.
  • Additionally, E*TRADE has over 200 commission-free ETFs. Please note that WisdomTree ETFs follow proprietary indices.
    • In order to avoid the $19.99 short-term ETF trading fee, no shares may be sold for at least 30 days once a customer purchases a commission-free ETF. Please see ETFs vs Mutual Funds for details on ETF pros and cons.
Vanguard Fund Similar E*TRADE NTF Mutual Fund or ETF Notes
US Stocks
Vanguard Total Stock Market Index Fund (VTSMX; 0.16%) Schwab Total Stock Market Index Fund (SWTSX; 0.03%)

iShares Core S&P Total US Stock Market ETF (ITOT; 0.03%)

VTSMX tracks the CRSP US Total Market Index.
POMIX tracks the S&P Total Stock Market Index.
Vanguard 500 Index Fund (VFINX; 0.16%) Schwab S&P 500 Index Fund (SWPPX; 0.03%)
WisdomTree Earnings 500 Fund (EPS; 0.28%)
EPS tracks a proprietary index.
Vanguard Extended Market Index Fund Admiral (VEXAX; 0.09%) Fidelity Extended Market Index Fund - Premium Class (FSEVX; 0.07%) Intended to be mixed with a 500 Index fund to approximate the Total Market.
Vanguard Mid Cap Index Fund (VIMSX; 0.22%) iShares Russell Mid-Cap Index Inv A (BRMAX; 0.34%) VIMSX tracks the CRSP US Mid Cap Index.
BRMAX tracks the Russell Midcap Index.
Vanguard Small Cap Index Fund (NAESX; 0.20%) Schwab Small Cap Index Fund (SWSSX; 0.05%) NAESX tracks the CRSP US Small Cap Index.
SWSSX tracks the Russell 2000 Index.
International Stocks
Vanguard Total International Stock Index Fund (VGTSX; 0.19%) Schwab International Index Fund (SWISX; 0.06%)

iShares Core MSCI Total International Stock ETF (IXUS; 0.11%)

SWISX does not contain Canada, Emerging Markets, or Small Caps.[2]
Vanguard Emerging Markets Index Fund (VEIEX; 0.33%) Northern Emerging Markets Equity Index (NOEMX; 0.35%) VEIEX tracks the FTSE Emerging Markets All Cap China A Inclusion Index index. NOEMX tracks the MSCI Emerging Markets Index
Vanguard Global ex-U.S. Real Estate Index Fund (VGXRX; 0.36%) WisdomTree Global ex-US Real Estate Fund (DRW; 0.58%) DRW follows a proprietary index.
US Bonds
Vanguard Total Bond Market Index Fund Admiral (VBTLX; 0.06%) Schwab US Aggregate Bond Index (SWAGX; 0.04%) Fidelity US Bond Index Premium (FSITX; 0.05%)

iShares Core Total USD Bond Market ETF (IUSB; 0.06%)

Vanguard Inflation-Protected Securities Fund (VIPSX; 0.20%) Schwab Treasury Inflation Protected Securities Index Fund (SWRSX; 0.19%)
Vanguard Intermediate-Term Tax-Exempt Fund (VMLTX; 0.20%)
Vanguard Intermediate-Term Tax-Exempt Fund (VWITX; 0.20%)
Vanguard Long-Term Tax-Exempt Fund (VWLTX; 0.20%)
T. Rowe Price Tax Free Short-Intermediate (PRFSX; 0.49%)
American Century Intermediate Term Tax-Free Bond Investor (TWTIX; 0.47%)
Northern Tax-Exempt (NOTEX; 0.46%)
Balanced Portfolios
Vanguard Lifestrategy Growth ([1]; 0.14%) iShares Core Aggressive Allocation ETF (AOA; 0.25%) 80% stock, 20% bond. Other iShares balanced portfolios include AOK (30% stock, 70% bond) and AOM (40% stock, 60% bond)
Notes:
  • Vanguard expense ratios are available at the fund's website under "Fees & Minimums". Use the provided link for the latest information.
  • An E*TRADE account is needed to access E*TRADE fund information.
  • Blackrock Lifepath index (similar to Target Retirement, but with commodities) A shares are available for between 0.41% and 0.45%
  • Some investors may wish to tilt their portfolio to increase Value stocks. These investors may consider using the following:
    • Large Value: WisdomTree Large Cap Value Fund (EZY; 0.38%), which follows a proprietary index.
    • Large & Mid-cap Value: iShares Core S&P US Value ETF (IUSV; 0.05%)
  • Corresponding Growth ETF is also available.

E*TRADE tips, links, and general orientation

Whereas the default account at Vanguard is a mutual fund account, in which you can only buy Vanguard mutual funds (all other products require a separate Vanguard Brokerage Service account), the default account at E*TRADE is a brokerage account. You can buy mutual funds from various fund families, ETFs, individual stocks, bonds, and brokered CDs all within the same E*TRADE account. As of March 2012:

  • E*TRADE's full fee schedule is here.

See also

References

  1. E*TRADE Financial Corporation - Investor Relations
  2. Please see Allan Roth's article on four generations of International funds.

External links