Pros and cons of buying on one vs the other? Im thinking it’d be more beneficial on Robinhood since there arent any commission fees. Thoughts? TC: 140k
Vanguard just got rid of commission fees.
Buy it on interactive brokers then take out margin to buy more shares
I prefer to maintain less number of accounts and would buy from the one I already have instead of opening a new brokerage/investment account.
There may be some small, nuanced way in which those two methods of buying VOO differ but I think they are pretty much the same since neither charge a commission to buy that fund. The only benefit of Vanguard that I can think of is that if you have an IRA (Roth or Traditional) with them you can buy some shares within the IRA (up to the federal $ limit) to get some tax benefits. I don’t believe Robinhood let’s you setup an IRA.
VOO is a vanguard ETF. Vanguard hasn't been charging commission on the etfs for several years. If you want to by just ETFs and mutual funds, vanguard is a good option.
There are no commissions or fees on Vanguard, either. Actually, most major brokerages don't have commissions on ETFs anymore. Robin hood is in trouble. My personal choice would be Fidelity or Schwab.
What do you mean, what trouble?
@willcode Robinhood contributed to the disruption of the commission-based business model. Now that the big players are ditching commissions as well Robinhood doesn’t have much left to differentiate themselves against the incumbents. Since they are private, we don’t really know the magnitude of the issue. If they go public we’ll get an idea of how they plan to generate profits relative to their currently high private valuation.
The amount of misinformation and lack of knowledge here is just 🙄 Short answer: The difference is minor - DRIP Long answer: Vanguard never charged fees for buying their mutual funds or ETFs. Robinhood doesn't charge either. So what's the difference? It is Dividend Reinvestment Plan (DRIP). When VOO gives you a dividend, you can configure your account in Vanguard to reinvest that dividend. As of now you cannot do that in Robinhood although they've said they'll do it soon.
Use Vanguard. Robinhood has no support for beneficiaries. May seem unimportant, but if something happens to you it's the difference between your family accessing funds right away versus having to spend a year in court to get the money. Also lawyers will take a big chunk of anything that goes to probate. If it's toy money this does not matter but if it's you main place to save money it can be a big deal
Good call.
Even though there are no commission fees on robinhood, you still will need to pay the expense ratio.
No duh
You’ll pay the expense ratio in both scenarios.