Is Vanguard good for teen investing?

Vanguard can be a good option for teen investing, particularly through its low-cost index funds. Brad Barrett and Jonathan Mendosa discuss that Vanguard's total stock market index funds, like VTSMX and VTSAX, are highly recommended for their broad market exposure and low fees 1. However, these funds have substantial minimum investment requirements—$3,000 for VTSMX and $10,000 for VTSAX—making it a bit challenging for beginners with limited funds 1.

For teens wanting to start with smaller amounts, they can consider using Vanguard's ETF equivalent, VTi, which does not have a minimum investment requirement but trades at the current market price per share 1. Alternatively, other platforms like M1 Finance allow for the purchase of fractional shares, which can bypass those minimum requirements although this option had limitations for custodial accounts at the time 1.

Additionally, Brad Barrett suggests that while Vanguard is excellent, there are viable alternatives such as Charles Schwab's SWTSX, which tracks a similar index but has no minimum investment requirement and even lower fees 2. This might be attractive for teens starting with smaller amounts of money.

Overall, Vanguard is a strong option, but exploring alternatives like Schwab or leveraging platforms that support fractional shares can also help address initial investment barriers for teens.