TD Ameritrade 300

Buy Vanguard Wellington Fund on TD Ameritrade, Etrade, Charles Schwab, Fidelity, or Ally


Can I invest in Vanguard Wellington (VWELX), Total Stock Market Index (VTSMX), S&P 500 Index Fund (VFINX) funds on Fidelity, Charles Schwab, TD Ameritrade, Etrade, Ally?



Overview of Buying the Vanguard Wellington Mutual Fund at Other Brokers


Some brokers offer Vanguard mutual funds, and others do not. A transaction fee may be applied to the purchase or sale of a Vanguard fund at some brokers, while other firms may provide the funds without any surcharges. Let’s take a look at the policies of Fidelity, TD Ameritrade, Schwab, E*Trade, and Ally Invest regarding the availability and price of the Vanguard Wellington Fund.


Investing in Vanguard Wellington Fund on E*Trade


The Vanguard Wellington Fund is available in two share classes: Investor shares (VWELX) and Admiral shares (VWENX). The former has an expense ratio of 0.25%, while the latter charges a lower 16 basis points. Vanguard imposes an initial purchase minimum of $3,000 on VWELX, while the mutual fund company requires $50,000 for VWENX.

The Investors fund is available for purchase at E*Trade, but only for existing shareholders; while the Admiral class fund is not available for any customer. Subsequent purchases of the Wellington Investors Fund at E*Trade have a $1 minimum. Dividends and capital gain distributions can both be reinvested in the fund or deposited as cash.

All Vanguard funds available at E*Trade are charged the broker’s transaction fee. It is $19.99, and it’s applied to purchases, sales, and exchanges. Placing a trade over the phone with a live representative tacks on an extra $25.

Besides the Wellington Fund, another popular Vanguard mutual fund, the Total Stock Market Index (VTSMX) is also available. This fund is the Investor shares fund. Admiral shares of this fund are not available at E*Trade. VTSMX has a $3,000 minimum, which is Vanguard’s normal purchase requirement.


Vanguard Wellington Fund on E*TRAde


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Investing in Vanguard Wellington Fund on Charles Schwab


Schwab offers 100 Vanguard funds. They are all no-load securities, but they do come with Schwab’s $76 transaction fee. This is applied only to the buy side. Vanguard Wellington (VWELX) is one of the funds on the list. It is available for purchase by existing fund shareholders only. VWENX is also available for purchase by current shareholders. Keep in mind that the $76 fee is applied to each purchase transaction; and the transaction fee is applied to both online and automated phone orders. Executing a trade with a live agent tacks on an additional $25.

Because all Vanguard funds at Schwab carry a transaction fee, there is no short-term redemption fee. The Wellington fund has a Schwab report card that is available for download free of charge in pdf format.


Vanguard Wellington Fund on Charles Schwab


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Investing in Vanguard Wellington Fund on Fidelity


There are 97 Vanguard funds available at Fidelity. None of them are transaction free. Fidelity’s transaction fee is either $49.95 or $75, depending on the fund. The fee is only applied on the buy side. Some Vanguard funds at Fidelity have a $2,500 minimum, although they have a $3,000 minimum if purchased directly from Vanguard.

An effective mutual fund screener is available to Fidelity customers. It is able to search exclusively for Vanguard funds. Although the Wellington Investors fund is shown in the results, Fidelity is not accepting orders for new purchases. The Wellington Admiral shares class is not shown in the screener’s results.

One Vanguard fund that does appear in the screener’s results is the Vanguard Total International Stock Index Fund (VGTSX). This is the Investor shares security. It has an 18-basis point expense ratio. The Admiral fund is not available. Fidelity shows a lot of important information on VGTSX. The fund’s profile page shows three stars from Morningstar, with Nestle and Samsung as top holdings.


Vanguard Wellington Fund on Fidelity


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Investing in Vanguard Wellington Fund on TD Ameritrade


The mutual fund screener at TD Ameritrade shows 100 Vanguard products that are available for purchase. Unfortunately, the Wellington fund does not appear on the list as Admiral shares. The Investors class shows that it is closed to new investors.

The Vanguard funds that are available for purchase all carry TD Ameritrade’s $49.99 transaction fee. And it is applied to both sales and purchases; so a round trip would be at least $100.

One Vanguard mutual fund that is available for purchase is the S&P 500 Index Fund (VFINX). This is the Investor class fund. TD Ameritrade’s profile page shows that the security has an expense ratio of just 0.14%. It has total assets of $329 billion, a very large fund. A mutual fund brief based on Morningstar data is available for download in pdf format, free of charge.

TD Ameritrade’s mutual fund information shows the growth of $10,000 for VFINX. It has underperformed the S&P 500 by at least 10 basis points for the past four years. The fund’s portfolio manager has been overseeing Vanguard’s S&P fund only since 2016.


Vanguard Wellington Fund on TD AMERITRADE


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Investing in Vanguard Wellington Fund on Ally Invest


The longest list of Vanguard funds so far is at Ally Invest. The broker shows 161 funds that are available for purchase by new investors. Regrettably, the two Wellington funds aren’t on this list. One that is is the Admiral version of the Vanguard Total Stock Market Index Fund (VTSAX). As noted above, E*Trade customers have access to the Investor class shares of this fund, but not the Admiral shares.

Ally charges $9.95 for every transaction of a no-load mutual fund. Because all Vanguard products are no-load, there is a $9.95 charge for every Vanguard fund traded at Ally. The broker shows basic information on this fund, such as top 5 holdings and sectors. Lipper ratings are shown, and the fund has 5 out of 5 on almost all metrics. Because the fund is an Admiral class fund, there is a $10,000 minimum to get in. The fund has more than $170 billion in assets. Its expense ratio is a very low 0.04%, and it currently yields 1.92%.


Vanguard Wellington Fund on ALLY INVEST


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Recap


All five brokerage houses restrict purchases of the Wellington fund to existing shareholders. Apparently, Vanguard has implemented this policy. If you want to get in this fund and don’t currently own any shares, going through Vanguard directly may be the best option.


Updated on 7/18/2017.


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