Moving money within Vanguard funds

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Level43
Posts: 2
Joined: Sat Jan 12, 2019 3:35 pm

Moving money within Vanguard funds

Post by Level43 » Sat Jan 12, 2019 3:48 pm

If I decide to reallocate money or purchase more shares within my Total Stock Market/Total Bond Market/Total International Stock Market accounts:

1. What is the latest time of day I can buy shares in a particular fund to lock in the day's price? 4 pm Eastern? (I understand when buying mutual funds you buy the fund at whatever the price is at the end of the trading day, not at the time you bought the shares??)

2. If I decide to reallocate money from my Total Stock Market fund to the Bond Market fund or vice versa, does that money transfer immediately, at the end of the day, or does it take a day or two?

Thanks!

User avatar
JoMoney
Posts: 6592
Joined: Tue Jul 23, 2013 5:31 am

Re: Moving money within Vanguard funds

Post by JoMoney » Sat Jan 12, 2019 4:25 pm

https://investor.vanguard.com/investing ... buy-shares
...
Prices
Each business day, by law, mutual funds determine the price of their shares.

They do this by taking the current value of all a fund's assets, subtracting the liabilities, and dividing the result by the total number of outstanding shares.

A fund's share price is known as the net asset value (NAV).

If we receive your request to buy or sell a fund before the close of regular trading hours on the New York Stock Exchange (usually 4 p.m., Eastern time), your transaction will receive that day's closing price.

If we receive your request after the market closes, your transaction will receive the next business day's closing price.
...
The price point you get will be that day's, it may take several hours or a day or so for your account to display the changes, if performed in a brokerage account (which is now the norm) there is a settlement period which may take a couple days to technically "settle", but will be largely transparent to you unless you plan to cash out before the settlement period has past, and effectively it does move at the end of the day for most purposes you would consider.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

Topic Author
Level43
Posts: 2
Joined: Sat Jan 12, 2019 3:35 pm

Re: Moving money within Vanguard funds

Post by Level43 » Sun Jan 13, 2019 6:14 pm

Thank-you for your feedback!

Post Reply