Vanguard ETF Funds
Many folks have retirement and other accounts with the Vanguard Group of Investment Companies. They have long been known as having rock-bottom expenses, and being a champion of index investing. The founder of the company, John Bogle, has written several popular books on long-term, low-cost investing. What may be less known is that Vanguard is also a major player in the ETF space. Vanguard offers 48 ETFs, including products in these following four categories: US Stock, International Stock, Sector Specific Stock, and Fixed-Income. Clients can trade these ETFs commission-free. That, combined with their marvelously low expense ratios, make them a great value. Their ETFs offer the benefits of index investing with the trading and pricing flexibility of individual stocks and bonds. They can be bought or sold at prices determined throughout the trading day. You also can sell them short and use stop-loss and limit orders. Of course, Vanguard brokerage clients can buy and sell other ETF’s, but they will have to pay a commission on these. Can the these ETFs be used as covered-call or cash-secured put candidates? The good news is that many of these 48 ETFs had listed options. If you have long-term holdings of any of these ETF, see if you can squeeze out additional incremental income by selling out-of -the-money calls against them. Also, if you want to own any of these at substantially lower prices, consider writing cash-secured puts with the intention to acquire them, and be paid with premium to do so. If you are just starting out building a retirement portfolio of indexed ETFs, this firm is a good choice for low-cost diversified ETF products with the added flexibility of options.
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