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Can I Buy Vanguard Mutual Funds on Charles Schwab? Does Charles Schwab Offer Fidelity Funds and ETFs?


Does Charles Schwab offer Fidelity and Vanguard mutual funds (Retirement, Stock, VTI, VTSAX, S&P, and Index Funds)? Schwab mutual funds review: purchase fees, expenses, and performance.



Does Schwab Offer Fidelity Funds?


Hundreds of fund families are available at Schwab. Presently, the firm offers 165 mutual funds from Fidelity, all of which have the regular $49.95 purchase price. The Fidelity funds have a $2,500 minimum initial purchase. Many other funds available at Schwab have $100 minimums.


Does Schwab Offer Vanguard Funds?


Clients also have access to 101 Vanguard funds at Charles Schwab. All of these carry the same $49.95 transaction fee (Ally Invest charges $9.95 for all funds). Vanguard funds come with a minimum of $3,000.


Charles Schwab Own Mutual Funds


This article will focus on what Charles Schwab has to offer to mutual funds investors. If you are looking for specific recommendations from Charles Schwab's own family of mutual funds then go to Best Charles Schwab mutual funds article.


Charles Schwab for Mutual Fund Investors Overview


Charles Schwab is one of the biggest online brokerages. It offers investors a wide variety of investment products, including a good selection of mutual funds. With some effective trading tools, this broker is worth checking out.


Charles Schwab Mutual Funds


Schwab provides its clients with over 5,000 mutual funds, of which approximately 3,500 are OneSource funds. These mutual funds have neither load nor transaction fee. Mutual funds at Schwab that do have a transaction fee are a somewhat uncomfortable $49.95 on the buy side, although they are free to sell.





OneSource funds must be held at least 3 months, or the broker will charge a $49.95 fee. Some funds not on the OneSource list also carry the short-term-trade fee.

The broker maintains the OneSource Select List. These top-rated funds are chosen by Schwab money managers. The list is reviewed every quarter, and the funds have no load and no transaction fee.

Report cards are provided for mutual funds free of charge. These reports are published by Schwab and are available in pdf format. They provide a clear snapshot of each fund, covering areas such as fund profile, comparative performance, and Morningstar rating.





Trading Tools


A useful tool on the website is a mutual fund portfolio builder. Users type in the dollar amount they want to invest along with an investment strategy, such as conservative or aggressive. The tool then provides a recommendation of funds, all of which are from the Select List. Pie charts are shown to graphically represent the model portfolio.








Schwab has an effective screener. Numerous criteria can be specified when performing a screen, such as distribution frequency, Sharpe ratio, minimum investment, 12b-1 fees, and fund manager tenure. Morningstar category is also a useful search criterion. There are numerous fund categories, such as long-term bond, diversified emerging markets, commodities, India equity, large-cap growth, and many more. A search in the real estate category returns 95 funds. Some of these have 5 stars from Morningstar and no transaction fee. Results from a search can be shown by various criteria, such as fund strategy, risk analysis, and ratings. The website allows screens to be saved, making future searches faster.


Can I Buy Fidelity Funds on Schwab


Schwab also has predefined screens. Traders can select from a variety of categories, such as taxable bond and commodities.

Hovering over a ticker symbol produces a small pop-up window that shows vital data, such as NAV, a chart, and fund strategy. Clicking on the ticker creates a more detailed fund profile page. On the fund's profile page, the prospectus and report card can be found. Also available is information on holdings, distributions, and tax analysis. A green 'Trade' button is available at the top of the page on all tabs so users can go straight to order entry.


Can I Buy Vanguard Funds on Schwab


Schwab's charting for mutual funds is good. Price action can be compared to a stock or index. Graph styles that are available include line, OHLC, bars, candlesticks, and mountain.

In addition to the website, Schwab also maintains two other platforms. First is StreetSmart.com, a Java-based system launched after logging into Schwab.com. Second is StreetSmartEdge, a desktop platform. Regrettably, the programs are designed for trading stocks, options, and ETFs. Mutual fund trades must be placed on the website, mobile app, or over the phone.

Investors at Schwab can trade on iPhone, iPad, Apple Watch, and Android. Mutual fund trades can be placed on any of the broker's mobile platforms. Orders placed on Apple Watch must be completed on iPhone.


Schwab Versus the Competition


Schwab offers good amount of NTF funds but not the best. Merrill Edge, for example, offers less than 900 but TD Ameritrade provides more than 4,200.

Many other brokers don't offer mutual fund trading on their mobile apps. For example, Webull, and Robinhood don't offer the service. Schwab is one of the brokers who does.

Schwab's website is about average by industry standards. It is more user-friendly than Vanguard's and Firstrade's, but less advanced than Merrill Edge's and TD Ameritrade's.

In addition to mutual funds, Schwab also offers exchange-traded funds with no commissions.


Can I Buy Vanguard Funds on Schwab Summary


Mutual fund investors have many good reasons to choose Charles Schwab. With 24/7 customer service, cash management products, and local branches, it has a lot to offer. But the firm's mutual funds commissions are on the higher side and it faces stiff competition from much better priced broker such as Firstrade and Ally Invest.