Redemption fee of Vanguard LT treasuries?

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fishdrzig
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Redemption fee of Vanguard LT treasuries?

Post by fishdrzig » Sat Nov 30, 2013 1:51 pm

Hello

I read the tutorial for buying bonds or bills or notes on the secondary market from Vanguard and I am a Voyager client.  I didn't pull the trigger yet and will call them when they open next week.  I was just wondering if someone can answer my question here, first:

Q.  The Vanguard order form shows a $100 redemption fee, what is this?  Does this mean that when I want to sell my 30 year Treasury bond in 10 years for another one to keep the volatility, that it will cost me $100?  If anyone has been through this process with Vanguard please let me know..  Thank you
By the way, it is the same redemption fee for Notes or Bills and I want to do this to for my Cash portion, but just want to be sure.
PFG
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Re: Redemption fee of Vanguard LT treasuries?

Post by PFG » Tue Jan 28, 2014 1:56 pm

Bumping this up in hopes that someone knows. Saw the same fee ($100) while working on selling some Bonds that I purchased on the secondary market.

Anyone know?
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whatchamacallit
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Re: Redemption fee of Vanguard LT treasuries?

Post by whatchamacallit » Tue Jan 28, 2014 8:11 pm

I haven't sold any myself but I can't imagine that could be true.

Their commission and fee schedule says commission free.
https://personal.vanguard.com/us/whatwe ... ommissions

I assumed that they just made money on the spread.
SteveGo
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Re: Redemption fee of Vanguard LT treasuries?

Post by SteveGo » Sat Mar 15, 2014 10:41 am

I have sold Treasuries on Vanguard. No commission. They hide it in the spread, like most other brokers. There is no explicit $100 commission.
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Re: Redemption fee of Vanguard LT treasuries?

Post by fishdrzig » Sun Mar 16, 2014 5:25 am

It is not a commission charge, it is a redemption fee that I was asking the question about.
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Re: Redemption fee of Vanguard LT treasuries?

Post by SteveGo » Sun Mar 16, 2014 8:48 am

Sorry if I used the wrong word. Texan is my native language  ;)

There were no commissions, fees or other charges on the redemption of 2 Treasuries I sold within the last 2 weeks. All of those items showed as $0.00 on the detailed transaction history.

Munis, commercial, and mortgage backed bonds have a $50 commission. The word "redemption" does not show up in the text on the commission and fees page at Vanguard.
fishdrzig wrote: It is not a commission charge, it is a redemption fee that I was asking the question about.
Last edited by SteveGo on Sun Mar 16, 2014 8:58 am, edited 1 time in total.
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AdamA
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Re: Redemption fee of Vanguard LT treasuries?

Post by AdamA » Sun Mar 16, 2014 9:29 am

SteveGo wrote: Sorry if I used the wrong word. Texan is my native language  ;)

There were no commissions, fees or other charges on the redemption of 2 Treasuries I sold within the last 2 weeks. All of those items showed as $0.00 on the detailed transaction history.

Munis, commercial, and mortgage backed bonds have a $50 commission. The word "redemption" does not show up in the text on the commission and fees page at Vanguard.
fishdrzig wrote: It is not a commission charge, it is a redemption fee that I was asking the question about.
Thanks, Steve.  I've been wondering since the original post.
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