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Vanguard Shifting Focus to Traders with Expanded ETF Selections?
Vanguard’s made its bones providing low-cost investments for long-term investors. Is it now trying to promote trading rather than investing? Last week, the firm announced it will offer its brokerage platform clients a significantly expanded list of transaction-free exchange-traded funds (ETFs). The selection includes products from competitors Schwab, iShares and State Street among others. “Vanguard wants to be the premier provider for long-term investors who want the flexibility to hold [ETFs]…” according to Karin Risi, who runs Vanguard’s retail investor department. But at the same time, its announcement notes that it is investing in its brokerage platform in order to “enhance the online experience and trading capabilities.” Which leaves us to wonder: What’s the story here? Investing? Trading? Something else? Let’s put this into perspective. While Vanguard can now claim bragging rights for putting 1,800 ETFs into its commission-free…