Search found 1037 matches

by ftobin
Fri Nov 08, 2019 11:33 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 325
Views: 34375

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

Any broker would love to take your non-marketable limit order. They just send your order to an exchange, and pick up the rebate when it fills. There is absolutely no risk on their part. One reason why some brokers don't want to take marketable orders in certain instruments is because they will gener...
by ftobin
Tue Oct 15, 2019 3:15 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

If you're setting your buy limit price at the prevailing bid (or sell at the offer), it's not the broker who is getting you the fill. Your order will have just been posted on an exchange. Your order just sits there. To get your execution, someone selling is crossing the spread to sell. And more than...
by ftobin
Tue Sep 10, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 204
Views: 21085

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

These things just reinforce the notion that maybe Vanguard's security options are a bit behind the competition's. It can be costly for the provider to support people losing their 2FA method and needing a way to get back in, especially in such a highly regulated industry. If Vanguard was innovative,...
by ftobin
Fri May 17, 2019 1:01 am
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 5235

Re: Will ETFs Replace Traditional Funds

You want it for free, which is totally understandable! (Well, you can get it for free at M1Finance so maybe it is more like "I want it free at the brokerage I'm already using!" which is also understandable; though by not switching to M1Finance we're all sending a signal to Vanguard & Fidelity that ...
by ftobin
Thu May 16, 2019 11:24 pm
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 5235

Re: Will ETFs Replace Traditional Funds

If brokerages came up with better tools to transact ETFs in dollars, handling all the partial-share complexities, this would be a boon. Brokerages don't need to "come up" with anything. They all have this and they all offer it to customers. Fidelity doesn't allow fractional share purchases, never m...
by ftobin
Thu May 16, 2019 6:51 pm
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 5235

Re: Will ETFs Replace Traditional Funds

Now if they can just come up with a trivial way at the brokerage to execute a "Market on Close" order that simulates a daily mutual fund purchase and the convenience advantage of the mutual fund goes away and no would really care. Actually, I would recommend that the way to go is not market-on-clos...
by ftobin
Wed Mar 27, 2019 7:11 am
Forum: Investing - Theory, News & General
Topic: American Funds readily available with no loads
Replies: 30
Views: 2332

Re: American Funds readily available with no loads

Can you help explain why all of your posts are about promoting this fund provider?
by ftobin
Wed Mar 20, 2019 1:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard ETFs, Are fractional shares allowed?
Replies: 29
Views: 6330

Re: Vanguard ETFs, Are fractional shares allowed?

I am thinking more of the mechanics of how the actual trade is processed on the exchange. Since you buy ETFs on the market from other sellers, not from a mutual fund company, I just wonder how they end up transacting the fractional shares. If I want $200 of VTI, that’s about a share and a half. How...
by ftobin
Mon Mar 11, 2019 11:47 pm
Forum: Investing - Theory, News & General
Topic: Large Lump Sum ($1M) into an ETF at Once
Replies: 37
Views: 3498

Re: Large Lump Sum ($1M) into an ETF at Once

BrandonBogle wrote:
Mon Mar 11, 2019 10:14 pm
Does Fidelity offer an option to buy such as this if you are concerned about having many lots for the purchase (and potentially a price change between them) vs. one?
Never, ever use AON orders. Pretty much the most game-able order you can enter.
by ftobin
Thu Feb 14, 2019 2:07 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

I submitted a limit order to sell VSS this morning in a Vanguard account. It was executed at 101.33 which is reflected in the chart above. But the "Day's Range" at finance.yahoo.com shows high so far was 101.29. (And yes, Vanguard says the trade executed at the time shown on the chart.) Morningstar...
by ftobin
Sun Feb 10, 2019 6:32 am
Forum: Investing - Theory, News & General
Topic: Tax efficient and FDIC insured
Replies: 11
Views: 1226

Re: Tax efficient and FDIC insured

While not technically FDIC insured, savings bonds are have effectively the same amount of protection, and are tax efficient in that the they are tax-deferred until redemption.
by ftobin
Thu Jan 10, 2019 9:00 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]
Replies: 145
Views: 10437

Re: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]

Some exchanges pay for order flow. But that is the exchange, not the market maker. The market makers don't have have that power, all they can do is widen the bid/ask spread to handle their expenses. Where are you getting this from? I used to do operational stuff and this seems way off base - but it...
by ftobin
Thu Jan 10, 2019 1:40 am
Forum: Investing - Theory, News & General
Topic: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]
Replies: 145
Views: 10437

Re: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]

One reason why a low-cost platform like Vanguard might want to ban trading in certain products is because they need to send the orders to a market maker for handling. That market maker doesn't want to handle toxic flow because it costs them money, and part of their agreement with Vanguard is likely...
by ftobin
Wed Jan 09, 2019 1:15 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]
Replies: 145
Views: 10437

Re: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]

One reason why a low-cost platform like Vanguard might want to ban trading in certain products is because they need to send the orders to a market maker for handling. That market maker doesn't want to handle toxic flow because it costs them money, and part of their agreement with Vanguard is likely ...
by ftobin
Thu Jan 03, 2019 8:56 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

vineviz wrote:
Thu Jan 03, 2019 8:30 pm
If you're a retail investor, you're always paying the prevailing spread.
Generally not. Usually the broker is going to give significant price improvement. There is extreme competition at this level. Many times when I've bought an oddlot I've paid the bid price.
by ftobin
Thu Jan 03, 2019 12:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard To Liquidate Convertible Securities Fund
Replies: 25
Views: 2449

Re: Vanguard To Liquidate Convertible Securities Fund

If investors should own the market portfolio, why should convertibles or preferred stocks be excluded from that? I don't see why common stocks and corporate bonds are inherently superior to convertibles or preferred stocks. I think you'll see the difficulty once you start trying to put convertibles...
by ftobin
Sat Nov 03, 2018 4:16 am
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 245
Views: 26037

Re: Vanguard to offer non-Vanguard ETFs commission-free

walletless wrote:
Sat Nov 03, 2018 12:57 am
Somehow I've never paid such a fee when trading vanguard ETF in vanguard.com
Sellers pay the fee.
by ftobin
Wed Sep 12, 2018 9:32 pm
Forum: Investing - Theory, News & General
Topic: Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders
Replies: 20
Views: 7016

Re: Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders

IMO the jist of the article is that Robinhood is getting a premium for order flow from HFT firms that is so large compared to what the firms give other brokers that the most plausible explanation is info leakage to enable frontrunning. If they are allowing information leakage they would likely be v...
by ftobin
Wed Sep 12, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders
Replies: 20
Views: 7016

Re: Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders

Speaking of which, how do limit orders work with dark pools? I thought that limit orders were required to be put into the order book of an exchange if they cannot be executed immediately, so why are HFTs buying those orders? Limit orders work the same on dark pools. Only ordinary non-marketable ret...
by ftobin
Tue Sep 11, 2018 9:01 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 91273

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

I was holding other Fidelity funds in a Fidelity account when making the transfer. Not everyone is in Vanguard which is what you seemed to assume when you said moving to ZERO funds in a taxable account would have you out of the market for a day or more. In my post I explicitly mentioned Admiral cla...
by ftobin
Tue Sep 11, 2018 12:35 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 91273

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

But you can do a sell/buy moving between funds without being out of the market for any days. That's what I did. How are you going to pull this off if the Fidelity fund can only be held at Fidelity, and the Vanguard fund at Vanguard, as Admiral shares must be? You'll have to convert to an instrument...
by ftobin
Mon Sep 10, 2018 12:58 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 91273

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

However, in a tax-advantaged account there is little risk in switching now in my opinion. You can always switch back. Just to give some perspective on the cost you're incurring for minor savings: On average, each day you're out of the market while transferring is going to cost you 0.025%/day (assum...
by ftobin
Fri Aug 31, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 139
Views: 29610

Re: New Vanguard AMT-free National Municipal Bond Fund

The average stated maturity of VTEB is 13.6 years. It's 8.7 years for VWIUX. VWIUX has somewhat more bonds rated below AA than does VTEB. Morningstar has VTEB's duration at 5.69 and VWIUX at 5.5 years. Average effective maturities are similar, according to Morningstar. I'm not sure of the differenc...
by ftobin
Thu Mar 29, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

From a brief discussion with a broker once, I suspect some of this comes down to how a brokerage interprets the regulations. And I suppose that includes how aggressive or conservative they want to be. This is really what it comes down to. Regulations limit the amount of leeway the broker is allowed...
by ftobin
Tue Mar 27, 2018 7:48 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

2. Order would be accepted and executed at some amount between 78.21 and 78.22 (say 78.218 or 78.22) and then I would be informed that there were insufficient funds and I would get a margin call even though this was not a margin account. I forget the details (Series 7 knowledge is fleeting), but I ...
by ftobin
Sun Mar 25, 2018 12:23 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

I think the disadvantage would be that you would pay the full spread more often than not. So I guess you think that price improvement is less likely with a marketable limit order than with a market order. I only tried marketable limit orders a couple of times because I suspected this might be true....
by ftobin
Sun Mar 25, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

Conclusion: A market order to sell does not always give you a poor execution. 99.999% of the time market orders will always give you the same price a marketable limit. The broker's systems are largely going to treat them the same. The market order only becomes a problem if the bid disappears due to...
by ftobin
Sun Mar 25, 2018 11:10 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

TDA reinvested my SPTM in my HSA 2 minutes before the close 3/22/2018 when it was never above $33 and my fill price was $33.25??? SPTM was between $32.85-$32.90 best I can tell at that time frame. TDA probably sent your order, along with all clients who had re-investment for the security, as one bi...
by ftobin
Sun Feb 18, 2018 3:19 am
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 566
Views: 75638

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

I routinely have limit orders in these SPDR ETFs go unfilled even though I see hundreds and thousands of shares traded at exactly my limit price. It is rather annoying. That was very rarely the case with Vanguard ETFs. I see and why is this happening? Probably a combination of two things: Your brok...
by ftobin
Sat Jan 20, 2018 5:05 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

Open market has many more participants than a handful of internalizers typical retail broker brokers exclusively route order to. When I last looked into it, I saw some brokers using just one internalizer or market maker. I don't know how much price competition happen in those scenarios. If you want...
by ftobin
Sat Jan 20, 2018 4:00 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

Well, one big problem is if your broker sell your order to a internalizer rather than to route it to a public exchange, your order won't be part of the exchange order book shown in that level 2 quote. The internalizer/market maker who bought your order from the broker have the legal obligation to e...
by ftobin
Sat Jan 20, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

Thanks Ftobin. Yes, it makes sense that brokers with their own inventory can always sell to clients. But I am thinking specifically of thinly traded securities. For example, I place limit order of 10,000 shares for $30, with stock currently at $31. A pair of transactions takes place at $30 and I do...
by ftobin
Sat Jan 20, 2018 3:50 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

If you have a buy order with Fidelity, they cannot buy at a price equal or lower than your price without giving you the shares. But they can certainly sell to you, which is generally to your benefit. In your story, your limit orders at $30 would executed anyways if the stock was at $29. Could this ...
by ftobin
Sat Jan 20, 2018 6:29 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

Can brokers keep inventory for themselves and earn by selling to their own clients? Is this legal? For example, since Fidelity can obviously see its own entire limit order book, if it sees that there's a huge demand for XXX at $30, currently trading at $31. If the stock goes down to $29, can Fideli...
by ftobin
Fri Jan 19, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

I guess then my concern would be that my order isn't given to a market maker. If your order is requires someone to pay a fee to access liquidity (which is true for the opening/closing crosses), your broker is going to send it to a market maker since they don't want to pay the fee themselves. I don'...
by ftobin
Fri Jan 19, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

AON orders are not required to be displayed, so chances are your limit price won’t show up in public quotes, and only your broker or the broker it was sent to know about it. There's an even stronger statement: AON orders cannot be displayed (though you might see a principal order representing part ...
by ftobin
Thu Jan 18, 2018 10:45 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

And there's only one listing exchange for a security? For the securities you'd most likely be trading, yes. I guess then my concern would be that my order isn't given to a market maker. If your order is requires someone to pay a fee to access liquidity (which is true for the opening/closing crosses...
by ftobin
Wed Jan 17, 2018 10:05 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

Interactive Brokers has an order type called split spread which apparently execute at the mid of bid/ask. Anyone tried it? All they're doing is passing on a mid-point peg order to the market maker, who re-sends it to an exchange as a midpoint peg. It's not really IB that's providing the order facil...
by ftobin
Wed Jan 17, 2018 5:41 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 288
Views: 37682

Re: Case study Broker trade executions

VSS for example, is "NYSE Arca" according to https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/productoverview?fundId=3184 but I don't know if that means it's included or excluded from the NYSE cross. Probably just old literature. All market makers are going to execute you...
by ftobin
Tue Nov 28, 2017 11:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 156
Views: 21835

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

Just wondering -- who takes the other side of the trade on factor funds and why are they so dumb? Oh, I guess it's us market index fund investors... Larry Swedroe mentions research showing that hedge funds looking for home runs go for high-volatility due to their compensation mechanics: http://www....
by ftobin
Tue Nov 07, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Corporate Bond ETF listing announced
Replies: 8
Views: 1551

Vanguard Total Corporate Bond ETF listing announced

Effective Thursday, November 9, 2017, Nasdaq will list the following ETF:
Vanguard Total Corporate Bond ETF (Ticker: VTC)
http://www.nasdaqtrader.com/TraderNews. ... TA2017-202
by ftobin
Tue Oct 17, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 566
Views: 75638

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

The only thing I'll say is that don't underestimate the cost of paying wider spreads or trading in illiquid ETFs that might not be tracking NAV well. Liquidity costs are harder for your average customer to calculate, which is likely part of the reason why they can make this move -- the cost is less ...
by ftobin
Fri Sep 22, 2017 8:13 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 35868

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

I have a vague recollection that some people that are employed in the brokerage industry and maybe their spouses cannot have a brokerage account at another firm. Mutual fund only accounts are excluded. Maybe someone can confirm. That's true for me. Brokerage accounts are only allowed at certain bro...
by ftobin
Sun Jul 02, 2017 12:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 35868

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

I'm curious if they ask questions like if you're a registered rep when you convert. Ordinarily, when a brokerage account is opened, there are a bunch of regulatory questions that don't apply to a mutual fund account. Are these asked when converting?
by ftobin
Thu Jun 29, 2017 8:41 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 35868

Re: Vanguard upgraded my accounts - angry

If our accounts were converted/upgraded, we would be forced to move our holdings to one of the approved brokers. We explained this to Vanguard some years ago, when they first offered the upgrade, and they backed off. We have no button on our screen, or emails encouraging us to convert, as some upth...
by ftobin
Sun Jun 04, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: "Beware Fake Stock News"
Replies: 15
Views: 3054

Re: "Beware Fake Stock News"

Boglegrappler wrote:It's too obvious to educated investors that they aren't real companies.
Just picking out LBIO, I think institutions definitely were buying. They owned 60% of LBIO.
Image
by ftobin
Sun Jun 04, 2017 7:44 pm
Forum: Investing - Theory, News & General
Topic: Schwab .03% SP500
Replies: 31
Views: 3136

Re: Schwab .03% SP500

livesoft wrote:6. Something else ...?
6. Where does the income from securities lending go? We're starting to get to the point where this should be noted more significantly, as a significant differentiator between index fund providers.
by ftobin
Sat May 27, 2017 3:16 pm
Forum: Investing - Theory, News & General
Topic: Why are capital gains taxed lower than div/interest?
Replies: 20
Views: 2402

Re: Why are capital gains taxed lower than div/interest?

Dale_G wrote:A crappy investment with no real return, but the taxman wants their due.

I think the point a few people are making is that real return or not, nominal returns are taxed. Capital gains vs dividends is the focus -- I think inflation is a red herring in the discussion.
by ftobin
Thu May 25, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: BlackRock, Vanguard Mull Pressuring Exxon to Disclose Climate Risks
Replies: 33
Views: 3005

Re: BlackRock, Vanguard Mull Pressuring Exxon to Disclose Climate Risks

Active management can sell companies if they don't like their governance. Passive management has to vote in favor of improved governance and sustainability. I would actually prefer it if passive management was truly passive on these issues and abstained, letting active investors drive the discussio...
by ftobin
Wed May 17, 2017 9:25 am
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 65
Views: 15679

Re: BofA HSA dropping Vanguard Funds

Don't know if there was a typo, but this post says that ER of BDOKX used to be 1.2%! h https://www.bogleheads.org/forum/viewtopic.php?t=162233 I've been willing to attribute the underpermance to the higher ER. now that it is lower I expect the performance to improve. Perhaps that was the gross expe...