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Can I Buy Vanguard Funds Through TD Ameritrade? Does TD Ameritrade Offer Fidelity Mutual Funds/ETFs (Retirement, Stock, VTI, VTSAX, S&P, and Index Funds)?



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If you are looking to compare the two brokerage firms, please go to TD Ameritrade vs Vanguard Comparison article.


Investing in Vanguard (Fidelity) Mutual Funds and ETF's on TD Ameritrade


Our readers are sometimes asking us the following questions:

- Are Vanguard (Fidelity) mutual funds and ETFs offered on TD Ameritrade account?
- Can I buy and sell Vanguard (Fidelity) funds such as VTI, VTSAX, VCVLX through TD Ameritrade?
- What is the cost to invest in Vanguard (Fidelity) mutual funds and ETFs on TD Ameritrade account?

In this article we will provide answers to all these questions.


Overview


TD Ameritrade has a large selection of mutual funds and commission-free ETF's. Some of these products are Fidelity and Vanguard funds. Here's a rundown on what these funds will cost to trade at TD Ameritrade.


Can You Buy Vanguard Funds on TD Ameritrade Account?


There are 32 Vanguard ETF's available at TD Ameritrade that are free to trade. They carry no loads and no transaction fees. Many of these funds have very low expense ratios as well, ranging from 0.08% to 0.17%.

The Vanguard exchange-traded funds have a variety of investment objectives. One invests solely in emerging market equities. It tracks an index with passive management and invests in large-, mid-, and small-cap stocks. Vanguard's VTI fund is available - it is one of the most popular ETFs for investing in stock market in general.

Another ETF is BLV, a long-term bond fund. It tracks the Barclays U.S. Long Government/Credit Float Adjusted Index and invests in both corporate and government debt. Most of the fund's holding are U.S. Treasury bonds. All securities in the fund have maturities of at least 10 years. VNQ is a REIT fund that pays distributions quarterly. Currently, it yields over 3%. The fund tracks the MSCI US REIT Index, and virtually all its holdings are American REITs. It is the largest REIT fund in the world with more than $30 billion in assets.


Can I Buy Fidelity Funds on TD Ameritrade


TD Ameritrade's handy screener returns 101 Vanguard mutual funds that can be purchased on the broker's website. Unfortunately, all of these products have transaction fees. The good news is that none of them carry loads. TD Ameritrade's charge for buying and selling transaction-fee mutual funds is $49.99. This fee is assessed for all transactions: purchases, sales, and exchanges. Some brokers charge less for mutual funds transactions, with Ally Invest offering low, $9.95 rate.

Many of the Vanguard mutual funds on the TD Ameritrade website have high ratings from Morningstar. For example, VISVX is a small-cap value fund that invests in stocks with market caps around $3 billion. The fund has 5 stars from the analyst. The mutual fund pays dividends every 3 months and yields just under 2% right now.

Vanguard retirement mutual funds are available on TD Ameritrade's website.


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Can You Buy Fidelity Funds on TD Ameritrade Account?


TD Ameritrade offers all exchange-traded funds commission-free, many of them are from Fidelity. The funds have expense ratios that are quite low by industry standards. They vary from 0.08% to 0.45%.

Fidelity ETF's have a variety of investment missions. FHLC, for example, invests in health care stocks. It has an average volume of over 100,000 shares, which reduces the cost to buy and sell the fund. It pays dividends 4 times per year and has recently been trading at a discount. Fidelity also offers FCOR, a corporate bond ETF. This is a new fund with only $40 million in assets. It invests mostly in investment-grade corporate debt, although up to 20% of the fund's holdings can be in junk bonds.

The mutual fund screener on TD Ameritrade's website generates 544 Fidelity mutual funds. All of them carry the broker's standard $49.99 transaction fee on both the buy and sell sides. Fortunately, most of these funds are load free, although some of them do have front-end or back-end loads. A front-end load can be as high as 5.75%. A back-end load can range between 0% and 1%, depending on how long the mutual fund shares are held.


Can I Buy Vanguard Funds on Ameritrade


Many of the Fidelity mutual funds on the TDA site have good ratings from Morningstar. For instance, FBGRX has 5 stars for 10-year performance. The fund invests in both foreign and domestic blue chip companies that are expected to grow more rapidly than their peers. The fund pays distributions twice per year. It currently has over $18 billion in fund assets. Its 5-year annualized return is 14%.

Another 5-star Fidelity fund available for purchase is FOCPX. This fund buys and sells Nasdaq and OTC securities. At least 25% of the fund's assets are in the tech sector, and both foreign and U.S. equities are traded. Its best year was in 1999 with a 73% return, while its worst performance occurred in 2008 at -46%.


Buying Vanguard Funds on TD Ameritrade Recap


Both Fidelity and Vanguard funds can be purchased by TD Ameritrade clients. Investors who are interested in ETF's will especially benefit from Vanguard's commission-free products.