HSA Investing and ETFs 101

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Tatupu
Posts: 38
Joined: Fri Aug 10, 2007 1:17 pm

HSA Investing and ETFs 101

Post by Tatupu »

All --

Forgive my ignorance but I need some education on purchasing ETF shares of Vanguard Total World Stock Index through TD Ameritrade. I would like to invest some HSA money through TD Ameritrade where they offer some commission-free Vanguard ETFs. I have only ever invested in mutual funds so buying ETF shares is new for me.

When I went to purchase some shares through the TD Ameritrade site the spread between the Bid price ($61.01) and the Ask price ($72.00) seems extreme. $61.97 is the current share price. Is the Ask price often that much greater than the current price per share or am I just missing something? I intend for this to be a long-term holding but I hesitate to pay that much per share above its current position.

Is there a better strategy out there to invest this HSA money in something low-cost?

Thanks!
livesoft
Posts: 74504
Joined: Thu Mar 01, 2007 8:00 pm

Re: HSA Investing and ETFs 101

Post by livesoft »

Bid/ask spread is only legit when the market is open. When the market is closed, the bid/ask spread is bogus.

I suggest that you do not submit ETF orders when the market is closed. See http://www.bogleheads.org/wiki/ETFs_vs_mutual_funds
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