Is VWRA liquid enough to buy now?

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Topic Author
Vision
Posts: 270
Joined: Tue Apr 02, 2013 3:16 am

Is VWRA liquid enough to buy now?

Post by Vision » Thu Feb 13, 2020 7:49 am

I'm heavily interested in buying an accumulating rather than distributing fund for tax efficiency reasons.

VWRA is one such fund:
https://americas.vanguard.com/instituti ... ode=EQUITY

Here is the thing -it is rather new.

So couldn't there be any liquidity issues?

AlohaJoe
Posts: 5120
Joined: Mon Nov 26, 2007 2:00 pm
Location: Saigon, Vietnam

Re: Is VWRA liquid enough to buy now?

Post by AlohaJoe » Thu Feb 13, 2020 7:54 am

$700 million in assets is "new"? Trading over $1 million a day? How much are you planning on buying every day that you think you'll run into liquidity issues?

I guess if you bought $5 or $10 million in a single day you might run into liquidity issues. Is that your plan?

Topic Author
Vision
Posts: 270
Joined: Tue Apr 02, 2013 3:16 am

Re: Is VWRA liquid enough to buy now?

Post by Vision » Thu Feb 13, 2020 11:04 am

AlohaJoe wrote:
Thu Feb 13, 2020 7:54 am
$700 million in assets is "new"? Trading over $1 million a day? How much are you planning on buying every day that you think you'll run into liquidity issues?

I guess if you bought $5 or $10 million in a single day you might run into liquidity issues. Is that your plan?
No, not that much. Under 7 digits.

AlohaJoe
Posts: 5120
Joined: Mon Nov 26, 2007 2:00 pm
Location: Saigon, Vietnam

Re: Is VWRA liquid enough to buy now?

Post by AlohaJoe » Thu Feb 13, 2020 8:58 pm

Vision wrote:
Thu Feb 13, 2020 11:04 am
AlohaJoe wrote:
Thu Feb 13, 2020 7:54 am
$700 million in assets is "new"? Trading over $1 million a day? How much are you planning on buying every day that you think you'll run into liquidity issues?

I guess if you bought $5 or $10 million in a single day you might run into liquidity issues. Is that your plan?
No, not that much. Under 7 digits.
Then you shouldn't run into any liquidity issues. ETFs, due to their structure, have far deeper liquidity than daily trading figures suggest. But you don't have to take my word for it. Just try a few trades. See what happens.

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