The Best HSA's With Brokerage Accounts
Fidelity HSAs are brokerage accounts, giving you the option to invest in a wide variety of investment options depending on your investment objective, time horizon, and risk tolerance—including commission-free low-cost index funds, 265 commission-free ETFs, Treasuries, CDs, stocks, bonds, mutual funds and more.
In our opinion, the most attractive investment vehicle available through Fidelity is their 4 zero expense ratio and zero investment minimum index mutual funds. Fidelity now offers the Fidelity ZERO Large Cap Index Fund (FNILX), Fidelity ZERO Extended Market Index Fund (FZIPX), Fidelity ZERO Total Market Index Fund (FZROX) and Fidelity ZERO International Index Fund (FZILX) available to individual retail HSA investors.
Further participants can access a Charles Schwab brokerage account once the $10,000 mark is reached in the basic investment account. A plethora of fantastic investment options are opened up to participants via a Schwab brokerage account, including over 200 commission-free ETFs. The commission-free ETF lineup is full of high quality, low cost, index funds.
Lively and HSA Bank offer a TD Ameritrade self-directed brokerage account which gives investors access to stocks, bonds, and mutual funds. TD Ameritrade used to have an awesome commission-free ETF program, which included many low-cost index funds from Vanguard and I-Shares. However, TD Ameritrade recently announced a change in the funds offered via their commission-free ETF program. They dropped all of the Vanguard and most of the I-Shares ETFs on Nov. 21st, 2017.
Investors can still buy Vanguard and I-Shares ETFs, but have to pay a $6.95 commission for each trade. The new set of rules that TD Ameritrade has instituted will increase transaction costs for those who trickle money into Vanguard and I-Shares ETFs. The new lineup has a few low-cost SPDR ETFs from State Street Global Advisors. Notable funds include SPDR Portfolio Total Stock Market ETF (SPTM), SPDR Portfolio World ex-US ETF (SPDW), SPDR Portfolio Emerging Markets ETF (SPEM), and SPDR Portfolio Aggregate Bond ETF (SPAB).
M1 Finance is leading the revolution with their completely free roboadvisor / brokerage offering. With M1 Finance your money automatically and intelligently goes to work in the investments you want for free. Recently M1 Finance eliminated all fees for all investors. You pay nothing for trades. You pay nothing for assets under management. M1 has completely eliminated commissions and fees on their platform. Now that the fees are gone, it’s the perfect place to dollar cost average into low-cost ETFs. In the spirit of full transparency, we currently have an affiliate relationship with M1.
A Saturna brokerage account administered by Pershing LLC. Through the brokerage account, participants can purchase stocks, ETFs, bonds, and a wide variety of non-Saturna affiliated funds. This includes access to no transaction fee (NTF) and no-load funds via the FundVest Focus platform. The platform features funds from providers including Franklin Templeton, Federated, Parnassus, PIMCO, Royce and T. Rowe Price.
Fidelity, Schwab, and Vanguard funds are not included in the NTF list. However, one can buy Fidelity, Schwab and Vanguard funds for $14.95 plus a $10 surcharge on the open market. To lower their expense ratios, these firms don't cover some of the regulatory requirements for delivery of documents, thus the $10 surcharge.
Recently, Pershing launched a new NTF exchange-traded fund (ETF) platform: FundVest ETF. The NTF ETF platform requires no purchase minimums or holding period and is available to all Pershing clients. FundVest ETF spans a diverse range of asset classes, featuring funds from providers including Direxion, Guggenheim Investments, PowerShares by Invesco, Oppenheimer Funds, PIMCO and SPDR ETFs from State Street Global Advisors.
Of all the providers included in the NTF ETF platform, State Street Global Advisors offers the lowest cost funds. Notable funds include SPDR Portfolio Total Stock Market ETF (SPTM), SPDR Portfolio World ex-US ETF (SPDW), SPDR Portfolio Emerging Markets ETF (SPEM) and SPDR Portfolio Aggregate Bond ETF (SPAB).