Vanguard Review 2025
The company that invented index fund investing. Legendary low-cost funds and no PFOF. But the platform is basic and trading features are limited.
The Bottom Line
Vanguard is legendary for pioneering low-cost index fund investing. Their funds (VTI, VOO, VXUS) are among the best available anywhere. But as a brokerage platform, they're behind competitors.
Our recommendation: Buy Vanguard funds at Fidelity or Schwab. You get the same funds with a better platform and more features.
What Vanguard Does Best
Legendary Funds
VTI (total market), VOO (S&P 500), VXUS (international)—Vanguard's index funds are best-in-class with expense ratios as low as 0.03%. The company pioneered this approach and still does it exceptionally well.
Ownership Structure
Vanguard is owned by its funds, which are owned by investors. This unique structure aligns Vanguard's interests with yours—no outside shareholders demanding profits at your expense.
No PFOF
Like Fidelity, Vanguard doesn't sell your orders to market makers.
Long-Term Focus
Vanguard intentionally makes trading inconvenient. No gamification, no flashy app. This actually helps long-term investors avoid emotional trading.
Where Vanguard Falls Short
Dated Platform
The website feels like 2008. The mobile app is basic. Compared to Fidelity, Schwab, or Robinhood, the user experience is significantly worse.
Limited Trading Features
- No fractional share trading (except through automatic investment)
- Options cost $1/contract (Robinhood is free)
- No extended hours trading
- Basic charting tools
No Sign-Up Bonuses
While competitors offer hundreds or thousands in bonuses, Vanguard offers nothing.
Minimum for Admiral Shares
Vanguard's lowest-cost mutual fund share class (Admiral) requires $3,000 minimum. ETFs have no minimum and similar expense ratios.
Who Should Use Vanguard
- Pure buy-and-hold investors who never want to trade
- Those who want friction to prevent overtrading
- Existing Vanguard 401(k) holders for consolidation
Who Should Look Elsewhere
- Anyone who wants modern platforms: Use Fidelity
- Fractional share buyers: Fidelity has 7,000+
- Options traders: Robinhood is free
- Bonus seekers: Vanguard has none
The Better Alternative
Buy Vanguard ETFs (VTI, VOO, VXUS) at Fidelity. You get:
- The exact same funds
- Better platform and mobile app
- 24/7 customer service
- Fractional shares
- No transfer fees
There's no reason to use Vanguard's platform just to buy Vanguard funds.
The Verdict
Vanguard's funds are excellent. Vanguard's platform is not. Unless you specifically want the friction of a basic platform to prevent yourself from trading, use Fidelity or Schwab to buy Vanguard ETFs.