Search found 1060 matches

by ftobin
Tue May 05, 2020 10:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 2-factor authentication becoming mandatory and available for non-US
Replies: 65
Views: 5214

Re: Vanguard 2-factor authentication becoming mandatory and available for non-US

I consider accessing a financial institution via their app to be *more* secure than using their website, especially on an iPhone. You can't get phished, the OS guarantees all communications are encrypted, no risk of rogue browser extensions stealing data. There are other nuanced considerations. For...
by ftobin
Sun May 03, 2020 2:08 am
Forum: Investing - Theory, News & General
Topic: Vanguard 2-factor authentication becoming mandatory and available for non-US
Replies: 65
Views: 5214

Re: Vanguard 2-factor authentication becoming mandatory and available for non-US

Fidelity too Unfortunately, for Fidelity, if you enable app TOTP 2FA, you have to use it on each login. If you simply use SMS-based 2FA, you can choose to enter it only when logging in from new devices. While I strongly prefer TOTP 2FA, I don't want to have to enter it all the time. Poor (lack of) ...
by ftobin
Fri May 01, 2020 10:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard 2-factor authentication becoming mandatory and available for non-US
Replies: 65
Views: 5214

Re: Vanguard 2-factor authentication becoming mandatory and available for non-US

At some point I plan to figure out what went wrong for me with Google Voice and Interactive Brokers. Venmo also has this problem, and Facebook did too at one point. From what I've noticed, these providers are using a service that classify GV numbers as landlines, which would suggest they can't rece...
by ftobin
Sun Mar 15, 2020 12:13 am
Forum: Investing - Theory, News & General
Topic: Have any of you ever bought VIX calls/puts?
Replies: 20
Views: 1056

Re: Have any of you ever bought VIX calls/puts?

Crushtheturtle wrote:
Sat Mar 14, 2020 6:31 pm
Playing with Options is playing with fire.
VIX options is juggling the fire. Different rules than other underlyings.

Understand what you are doing.
I love your metaphor!
by ftobin
Fri Feb 14, 2020 11:15 pm
Forum: Investing - Theory, News & General
Topic: Fidelity lets clients now trade fractional shares of stocks and ETFs
Replies: 180
Views: 17384

Re: Fidelity lets clients now trade fractional shares of stocks and ETFs

I find M1's implementation pretty reasonable - a trade at a target time window - after open. I think it was 10:30 central?. That's great if brokers can keep cost down and provide that functionality. Generally there is much more liquidity near at EOD, so there's more liquidity to hedge with during t...
by ftobin
Fri Feb 14, 2020 1:00 pm
Forum: Investing - Theory, News & General
Topic: Fidelity lets clients now trade fractional shares of stocks and ETFs
Replies: 180
Views: 17384

Re: Fidelity lets clients now trade fractional shares of stocks and ETFs

I think I asked earlier in the thread, but how would folks expect this to work? Would they limit it to Market or Limit on Open (MOO or LOO) or Market or Limit on Close (MOC or LOC) orders? Would they give you a choice between the two? Or would you be able to specify a time for your order? Would the...
by ftobin
Fri Jan 10, 2020 1:17 am
Forum: Investing - Theory, News & General
Topic: Why don’t ETF shares ever split to reduce price?
Replies: 29
Views: 3419

Re: Why don’t ETF shares ever split to reduce price?

Gleevec wrote:
Thu Jan 09, 2020 11:29 pm
I disagree, if you split your ETFs to be cheaper, you retain your institutional buyers
This is not true. The smaller spreads in bps, lower minimum increment in bps, and lower trading costs (share-based fees) encourage trading at higher dollars.
by ftobin
Thu Jan 09, 2020 10:26 pm
Forum: Investing - Theory, News & General
Topic: Why don’t ETF shares ever split to reduce price?
Replies: 29
Views: 3419

Re: Why don’t ETF shares ever split to reduce price?

Thanks for all the replies. I am just surprised because if the goal is to have a lot of buyers of your ETF product, for a given ER having a lower per share price is a huge advantage in the market it would seem. The goal is not to have a lot of buyers, but to have a lot of AUM. AUM is gotten from ap...
by ftobin
Wed Jan 08, 2020 5:04 pm
Forum: Investing - Theory, News & General
Topic: Why don’t ETF shares ever split to reduce price?
Replies: 29
Views: 3419

Re: Why don’t ETF shares ever split to reduce price?

fallingeggs wrote:
Wed Jan 08, 2020 12:05 pm
Leveraged ETFs split and reverse-split all the time!
Leveraged ETFs appeal to different clients than most ETFs, mainly to intra-day traders who might need smaller increments to hedge with.
by ftobin
Wed Jan 08, 2020 2:51 am
Forum: Investing - Theory, News & General
Topic: Why don’t ETF shares ever split to reduce price?
Replies: 29
Views: 3419

Re: Why don’t ETF shares ever split to reduce price?

And as you seem to mention, fractional purchases are now the norm rather than the exception. This is highly untrue. There are no fractional purchases, just fractional ownership. Transactions only work in whole shares. What bookkeeping brokers do to allow you to own fractional shares is one thing, b...
by ftobin
Wed Jan 08, 2020 1:24 am
Forum: Investing - Theory, News & General
Topic: Why don’t ETF shares ever split to reduce price?
Replies: 29
Views: 3419

Re: Why don’t ETF shares ever split to reduce price?

Purchasing higher-dollar ETFs is more efficient because the spread is a smaller percentage of the price (among other things I won't get into). Consider the extreme example of a $1/share stock. The minimum spread, $0.01, is 1% of the stock's price. It's assumed that on average you pay half the spread...
by ftobin
Sat Jan 04, 2020 4:38 am
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

Would you be able to give me an example in simple terms of what you mean by not guaranteeing a NAV execution. Say I place a order for ETF Fund X...? Won't I be close even if I uses a Market order or what am I missing? Thanks "guaranteeing a NAV execution" has a fairly precise meaning. "close" is ce...
by ftobin
Thu Jan 02, 2020 3:31 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Continues to Lower the Cost of Investing with Expansion of Commission-Free Platform Beyond ETF
Replies: 71
Views: 5380

Re: Vanguard Continues to Lower the Cost of Investing with Expansion of Commission-Free Platform Beyond ETF

I saw that too and just commented on it in the other thread. I don't think there's a way to make money on the midpoint trades There is a way to make money if you're getting better-than-midpoint executions, but you and Vanguard would eventually get slapped, as the executing broker would not be happy.
by ftobin
Thu Jan 02, 2020 4:05 am
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

I do not have any experience with ETF's but curious if we have the same problem with mutual funds? When I place an order for a mutual fund in the morning I have no idea what the closing price will be when its executed. Is this similar? Thanks The problem does not exist for mutual funds: while you d...
by ftobin
Tue Dec 31, 2019 11:33 pm
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

But I see several methods of defining reasonable prices in most circumstances looking at previous executions and/or the actual value of the underlying assets the ETF holds. Not outside of market hours, which is what I was originally responding to. I don't see much value in responding any more. You ...
by ftobin
Tue Dec 31, 2019 1:51 pm
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

I once posted a thread asking whether ETFs actually owned the shares, or were they just "contracts" with counterparties that mimic owning shares. The term is "synthetic" I learned there. Everyone insisted the ETFs, really do own the shares, but late in the thread someone pointed to some that are in...
by ftobin
Tue Dec 31, 2019 1:08 pm
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

My understanding is that trading out of market hours is bad because prices tend to go wonky at market open due to the time it takes for trading to get started and all of the various after-hours actions that have taken place. But if you use a limit order to set a rationally set price above which you...
by ftobin
Tue Dec 31, 2019 12:57 am
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

What you're saying doesn't make any sense to me. I place an order to buy a share of an ETF at less than NAV. By definition I won't buy any shares of that ETF unless they're being offered for less than NAV. How could I regret that? Especially given I'm a Boglehead who's going to be holding onto that...
by ftobin
Sun Dec 29, 2019 11:51 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 300
Views: 41217

Re: Case study Broker trade executions

Startled Cat wrote:
Sun Dec 29, 2019 5:33 pm
but neither can I think of any incentive to give one type of order more price improvement than the other.
Market makers can play shenanigans so that the limit order is less likely to execute, and become posted, therefore earning them a rebate instead of having to pay PI.
by ftobin
Sun Dec 29, 2019 11:46 pm
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

I imagine that’s what the limit order is for? If you set the limit at NAV or recent trading values I can’t see why you should have much regret over how much you paid. Limit order or not is irrevelant. In general, non-marketable limit order posted at the inside, especially from retail clients, get r...
by ftobin
Sun Dec 29, 2019 3:46 pm
Forum: Investing - Theory, News & General
Topic: Do you prefer etfs or mutual funds?
Replies: 271
Views: 10035

Re: Vanguard phasing out regular mutual fund shares?

I put limit orders in on the weekend. They are good for up to 60 days I believe. My objective is to buy x shares of an etf as long as it's not greater than y price (so I don't get whacked if there is a temporary jump in price.) I don't watch it during the day although I do get an email from vanguar...
by ftobin
Wed Nov 20, 2019 3:22 am
Forum: Investing - Theory, News & General
Topic: What "Exactly" Does Selling Order Flow Mean?
Replies: 31
Views: 2981

Re: What "Exactly" Does Selling Order Flow Mean?

It’s one of those things that are tiny for any individual investor (the profit given up is pennies on a trade, so who’s going to raise a big stink?) There is no profit given up at all. All brokers are required by SEC regulation to adhere to NBBO -- National Best Bid and Offer. If a market maker is ...
by ftobin
Fri Nov 08, 2019 11:33 pm
Forum: Investing - Theory, News & General
Topic: [Deleted] [Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund]
Replies: 652
Views: 69243

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: 300
Views: 41217

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: 23634

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: 5432

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: 5432

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: 5432

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: 2530

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: 8585

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: 3686

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: 300
Views: 41217

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: 1286

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: 11187

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: 11187

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: 11187

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: 300
Views: 41217

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: 2548

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: 26991

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: 7470

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: 7470

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: 814
Views: 97755

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: 814
Views: 97755

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: 814
Views: 97755

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: 30468

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: 300
Views: 41217

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: 300
Views: 41217

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: 300
Views: 41217

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: 300
Views: 41217

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...