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 August 16, 2018. Writers have striven for accuracy, but investors should verify information before taking action.

Tools for Boglehead-style investing

  • E*TRADE has over 4300 NTF (No Transaction Fee) Mutual Funds, of which 122 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 250 commission-free ETFs, of which 210 have expense ratios under 0.50%. 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.
  • This table shows common Vanguard Admiral Class funds and similar no transaction fee mutual funds and commission-free ETFs available at E*TRADE. In many cases they track different indexes and are not precisely equivalent. See the appropriate asset class article in index returns for historical return comparisons among various indexes. Please note that E*TRADE does not have low-cost, no transaction fee mutual funds or no commission ETFs for all asset classes, and higher cost funds may be listed where no low-cost option is available.
Fund Class Fund Name Ticker ER Index Tracked
US Stocks
Total US Stock Market Vanguard Total Stock Market Index Fund VTSAX 0.04% CRSP Total Market Index
Schwab Total Stock Market Index Fund SWTSX 0.03% Dow Jones US Total Stock Market Index
iShares Core S&P Total U.S. Stock Market ETF ITOT 0.03% S&P Total Market Index
Vanguard Total Stock Market ETF VTI 0.04% CRSP Total Market Index
S&P 500 Vanguard 500 Index Fund VFIAX 0.04% S&P 500
Schwab S&P 500 Index Fund SWPPX 0.03%
Vanguard S&P 500 ETF VOO 0.04%
Extended Market Vanguard Extended Market Index Fund VEXAX 0.08% S&P Completion Index
Fidelity Extended Market Index Fund FSEVX 0.045% Dow Jones U.S. Completion Total Stock Market Index [2]
No commission-free index ETF is available for this asset class.
Mid Cap Vanguard Mid Cap Index Fund VIMAX 0.05% CRSP US Mid Cap Index
iShares Russell Mid-Cap Index Fund (Inv A) BRMAX 0.34% Russell Mid Cap Index
No commission-free index ETF is available for this asset class.
Small Cap Vanguard Small Cap Index Fund VSMAX 0.05% CRSP US Small Cap Index Index
Schwab Small Cap Index Fund SWSSX 0.05% Russell 2000 Index
Vanguard Small-Cap Value ETF [note 1]

Vanguard Small-Cap Growth ETF

VBR

VBK

0.07% CRSP US Small Cap Value Index

CRSP US Small Cap Growth Index

Real Estate Vanguard Real Estate Index Fund VGSLX 0.12% MSCI US Investable Market Real Estate 25/50 Index
No NTF index mutual fund is available for this asset class.
iShares Core U.S. REIT ETF USRT 0.08% FTSE NAREIT Equity REITS Index
International Stocks
Total International Stock Market Vanguard Total International Stock Index VTIAX 0.11% FTSE Global All Cap ex US Index
No NTF index mutual fund is available for this asset class.
iShares Core MSCI Total International Stock ETF IXUS 0.10% MSCI ACWI ex USA IMI Index
Developed Markets [note 2] Vanguard Developed Markets Index Fund VTMGX 0.07% FTSE Developed All Cap ex US Index
Schwab International Index Fund SWISX 0.06% MSCI EAFE Index (excludes small caps)
Vanguard FTSE Developed Markets ETF VEA 0.07% FTSE Developed All Cap ex US Index
Emerging Markets Vanguard Emerging Markets Index Fund VEMAX 0.14% FTSE Emerging Markets All Cap China A Inclusion Index
Northern Emerging Markets Equity Index Fund NOEMX 0.31% MSCI Emerging Markets Index (excludes small caps)
Vanguard FTSE Emerging Markets ETF VWO 0.14% FTSE Emerging Markets All Cap China A Inclusion Index
US Bonds
TIPS Vanguard Inflation Protected Securities Fund VAIPX 0.10% [note 3] Not an index fund
Schwab Treasury Inflation Protected Securities Index Fund SWRSX 0.05% Bloomberg Barclays U.S. TIPS Index
iShares 0-5 Year TIPS Bond ETF STIP 0.06% Bloomberg Barclays U.S. TIPS 0-5 Years Index
Aggregate Bond Vanguard Total Bond Market Index Fund VBTLX 0.05% Bloomberg Barclays U.S. Aggregate Float Adjusted Index
Fidelity U.S. Bond Index Fund FSITX 0.025% Bloomberg Barclays U.S. Aggregate Bond Index
Schwab U.S. Aggregate Bond Index Fund SWAGX 0.04% Bloomberg Barclays U.S. Aggregate Bond Index
Vanguard Total Bond Market Index ETF BND 0.05% Bloomberg Barclays U.S. Aggregate Float Adjusted Index
Municipal Bond Vanguard Tax-Exempt Bond Index Fund VTEAX 0.09% [note 4] S&P National AMT-Free Municipal Bond Index
No NTF index mutual fund is available for this asset class
iShares National Muni Bond ETF MUB 0.07% S&P National AMT-Free Municipal Bond Index
Vanguard Tax-Exempt Bond ETF VTEB 0.09% S&P National AMT-Free Municipal Bond Index
International Bonds
ex-US Aggregate Bond Vanguard Total International Bond Index Fund VTABX 0.11% Bloomberg Barclays Global Aggregate ex-USD Float-Adjusted Index (Hedged)
No NTF index mutual fund is available for this asset class.
Vanguard Total International Bond ETF BNDX 0.11% Bloomberg Barclays Global Aggregate ex-USD Float-Adjusted Index (Hedged)
iShares Core International Aggregate Bond ETF IAGG 0.09% Bloomberg Barclays Global Aggregate ex USD 10% Issuer Capped (Hedged) Index
Balanced Funds
Target-date funds Vanguard Target Retirement Funds Various 0.15%
Vanguard Target Retirement Investor Funds Various 0.13%-0.15%
Fixed allocation funds Vanguard LifeStrategy VASIX, VSCGX, VSMGX, VASGX 0.11% - 0.14% 20/80 to 80/20 allocations
No NTF index mutual funds are available for this asset class.
iShares Core Allocation ETFs AOK, AOM, AOR, AOA 0.25% 30/70 to 80/20 allocations

Notes

  1. ↑ No commission-free small cap blend index ETF is available.
  2. ↑ FTSE classifies Korea as a developed market, while MSCI classifies it as emerging. Canada is not included in EAFE indexes.
  3. ↑ Admiral Shares class fund has a $50,000 minimum investment. Investor-class fund VIPSX has a 0.20% ER and a $3,000 minimum
  4. ↑ 0.25% purchase fee

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. ↑ See, Dow Jones US Total Stock Market Indexes Literature.

External links

Business organizations
Investment company
Investment management company
Government sponsored enterprises
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