There is no longer a 10% redemption fee for partial shares.The post you quoted is 10 years old. I'm not sure #2 is accurate anymore. At least the part about X free trades is outdated - free ETF trades are now unlimited.I am using them exactly how you are. I am embarrassed to say I had legitimately no idea that the redemption fee in #2 was a reality. I just turned off my automatic reinvestments. Thank you for bringing this to my attention....
2. I only buy low cost Vanguard/iShares ETF (and occasionally a Schwab ETF). ER is never more than .12 on any fund. I get 100 free stock/ETF trades per month. I know about the 10% redemption fee for partial shares...I solve that by not reinvesting dividends..I take my dividends, and rebuy after they post and buying up to the next whole share so that doesn't happen. I know they make something on the buy/ask spread on ETF's, but I think with Vanguard, it's pretty small, and for a long-term it's going to be negligible, and it's still cheaper than paying a commission to a broker.
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I believe you are correct. Too tired to check the date but not too tired to post, a dangerous combo
Statistics: Posted by anon_investor — Tue Mar 26, 2024 10:02 pm — Replies 7054 — Views 888710