Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases)

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exodusNH
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Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases)

Post by exodusNH »

[I removed "(might be in pilot phase)" from the title. Fractional share purchases are now available. See the update in this post --admin LadyGeek]

Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
Last edited by exodusNH on Wed Dec 01, 2021 5:23 pm, edited 3 times in total.
retire2022
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by retire2022 »

exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.
O wow really? I can't believe it, I guess I won't leave them for Fidelity, I am still waiting for Flagship upgrade.

Maybe next year? :0
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exodusNH
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by exodusNH »

retire2022 wrote: Wed Dec 01, 2021 4:21 pm
exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.
O wow really? I can't believe it, I guess I won't leave them for Fidelity, I am still waiting for Flagship upgrade.

Maybe next year? :0
I think the board admins can convey on you Honorary Flagship status, since they can offer you the same additional benefits. :happy
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Cheez-It Guy
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Re: Vanguard now allows purchase/sale of fractional ETFs for their ETFs

Post by Cheez-It Guy »

Cool. Can you post anonymized actual text of the E-Mail? I haven't received yet, although I no longer hold any Vanguard ETFs (in case actively holding said ETFs is a determining factor in who receives the communication).
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by retire2022 »

exodusNH wrote: Wed Dec 01, 2021 4:23 pm
retire2022 wrote: Wed Dec 01, 2021 4:21 pm
exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.
O wow really? I can't believe it, I guess I won't leave them for Fidelity, I am still waiting for Flagship upgrade.

Maybe next year? :0
I think the board admins can convey on you Honorary Flagship status, since they can offer you the same additional benefits. :happy
LOL

BTW I have 2.6 million in my account since August 11.

Actually I am on the buy&Sell>trade ETF> it stops me there and indicates enter whole number, I tried 0.5 for VOO and it would not let me move to next step.
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exodusNH
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by exodusNH »

retire2022 wrote: Wed Dec 01, 2021 4:28 pm
exodusNH wrote: Wed Dec 01, 2021 4:23 pm
retire2022 wrote: Wed Dec 01, 2021 4:21 pm
exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.
O wow really? I can't believe it, I guess I won't leave them for Fidelity, I am still waiting for Flagship upgrade.

Maybe next year? :0
I think the board admins can convey on you Honorary Flagship status, since they can offer you the same additional benefits. :happy
LOL

BTW I have 2.6 million in my account since August 11.

Actually I am on the buy&Sell>trade ETF> it stops me there and indicates enter whole number, I tried 0.5 for VOO and it would not let me move to next step.
When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
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anon_investor
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by anon_investor »

exodusNH wrote: Wed Dec 01, 2021 4:31 pm
retire2022 wrote: Wed Dec 01, 2021 4:28 pm
exodusNH wrote: Wed Dec 01, 2021 4:23 pm
retire2022 wrote: Wed Dec 01, 2021 4:21 pm
exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.
O wow really? I can't believe it, I guess I won't leave them for Fidelity, I am still waiting for Flagship upgrade.

Maybe next year? :0
I think the board admins can convey on you Honorary Flagship status, since they can offer you the same additional benefits. :happy
LOL

BTW I have 2.6 million in my account since August 11.

Actually I am on the buy&Sell>trade ETF> it stops me there and indicates enter whole number, I tried 0.5 for VOO and it would not let me move to next step.
When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
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exodusNH
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Re: Vanguard now allows purchase/sale of fractional ETFs for their ETFs

Post by exodusNH »

Cheez-It Guy wrote: Wed Dec 01, 2021 4:25 pm Cool. Can you post anonymized actual text of the E-Mail? I haven't received yet, although I no longer hold any Vanguard ETFs (in case actively holding said ETFs is a determining factor in who receives the communication).
From the email:
Welcome to fractional ETF investing—a simpler way to buy and sell Vanguard ETFs®. Now you have the option to trade Vanguard ETFs in either specific dollar amounts or whole shares.*

Fractional ETF investing makes it possible to:

1. Invest by dollar amount, regardless of an ETF's share price. You won't have to leave a balance in your settlement fund unless you want to.
2. Sell a specific dollar amount so you can withdraw exactly what you need from your account—nothing more, nothing less.
3. Easily rebalance your portfolio by dollar amount.

Log in to your account for the opportunity to be among the first Vanguard investors to take advantage of this new trading option.

*Fractional ETF trades based on dollar amounts must be placed as market orders with a "day" duration.
To clarify (and I already adjusted the thread title), fractional purchases are done by specifying dollar amounts, not by specifying fractions directly.
Last edited by exodusNH on Wed Dec 01, 2021 4:35 pm, edited 1 time in total.
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exodusNH
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by exodusNH »

anon_investor wrote: Wed Dec 01, 2021 4:32 pm
exodusNH wrote: Wed Dec 01, 2021 4:31 pm When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
Website. I have the older version of the app because I turned off automatic updates.
retire2022
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by retire2022 »

exodusNH wrote: Wed Dec 01, 2021 4:31 pm
When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
I am on desktop and it is not calculating the dollar amount

I will try the broken Beacon App
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by anon_investor »

exodusNH wrote: Wed Dec 01, 2021 4:34 pm
anon_investor wrote: Wed Dec 01, 2021 4:32 pm
exodusNH wrote: Wed Dec 01, 2021 4:31 pm When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
Website. I have the older version of the app because I turned off automatic updates.
Weird, on both the new crappy app AND the website, I see no option to buy in dollar amounts.
nevernotpresent
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases)

Post by nevernotpresent »

exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
Great, Now we just have to wait another 5 years for Automatic Investment to ETFs :P

Just kidding, glad that Vanguard finally took a step in the right direction. Thanks for the heads up!
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by retire2022 »

anon_investor wrote: Wed Dec 01, 2021 4:40 pm
exodusNH wrote: Wed Dec 01, 2021 4:34 pm
anon_investor wrote: Wed Dec 01, 2021 4:32 pm
exodusNH wrote: Wed Dec 01, 2021 4:31 pm When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
Website. I have the older version of the app because I turned off automatic updates.
Weird, on both the new crappy app AND the website, I see no option to buy in dollar amounts.
+1 it is not working, op must be pilot, us peons don't have it.
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exodusNH
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by exodusNH »

anon_investor wrote: Wed Dec 01, 2021 4:40 pm
exodusNH wrote: Wed Dec 01, 2021 4:34 pm
anon_investor wrote: Wed Dec 01, 2021 4:32 pm
exodusNH wrote: Wed Dec 01, 2021 4:31 pm When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
Website. I have the older version of the app because I turned off automatic updates.
Weird, on both the new crappy app AND the website, I see no option to buy in dollar amounts.
Are you on the after hours screen or the normal one? I have no easy way to get an image into the board. It's not available on the after-hours screen.

From the website: My Accounts > Buy & Sell > Trade ETFs or Stocks > Select brokerage account > Click on Buy > Enter VTI > Hit tab.

At this point, the real-time quote shows on the right-hand of the screen. In the amount field next to the Symbol field, the default text shows "Enter Shares" but next to that is a stack text display with Shares / Dollars. If I click dollars, I can enter a dollar amount.

Note this only works with Vanguard's ETFs. It's not for any ETF / stock. E.g., IXUS -> "Enter Shares" with no toggle for Shares / Dollars.
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exodusNH
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by exodusNH »

retire2022 wrote: Wed Dec 01, 2021 4:46 pm
anon_investor wrote: Wed Dec 01, 2021 4:40 pm
exodusNH wrote: Wed Dec 01, 2021 4:34 pm
anon_investor wrote: Wed Dec 01, 2021 4:32 pm
exodusNH wrote: Wed Dec 01, 2021 4:31 pm When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
Website. I have the older version of the app because I turned off automatic updates.
Weird, on both the new crappy app AND the website, I see no option to buy in dollar amounts.
+1 it is not working, op must be pilot, us peons don't have it.
I am most decidedly NOT a flagship member. I'm only just above 6 figures in taxable and Roth IRA. It's possible that I'm in the pilot group. It's not that I do a lot of trading. It's mostly just weekly buys of VXUS with the ETF cash turds getting flushed into VTSAX.

Edit: and it isn't possible for after-hours trading. (Likely because they require you to submit a market order. After hours, the only allow limit orders.)
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Re: Vanguard now offers fractional ETFs for Vanguard ETFs

Post by anon_investor »

exodusNH wrote: Wed Dec 01, 2021 4:47 pm
anon_investor wrote: Wed Dec 01, 2021 4:40 pm
exodusNH wrote: Wed Dec 01, 2021 4:34 pm
anon_investor wrote: Wed Dec 01, 2021 4:32 pm
exodusNH wrote: Wed Dec 01, 2021 4:31 pm When I go there, choose my taxable account, enter, e.g. VXUS, the "Amount" box now has "Shares" and "Dollars". You purchase fractional shares by specifying a dollar amount, not entering 0.5 share.
Is this on the app or website?
Website. I have the older version of the app because I turned off automatic updates.
Weird, on both the new crappy app AND the website, I see no option to buy in dollar amounts.
Are you on the after hours screen or the normal one? I have no easy way to get an image into the board. It's not available on the after-hours screen.

From the website: My Accounts > Buy & Sell > Trade ETFs or Stocks > Select brokerage account > Click on Buy > Enter VTI > Hit tab.

At this point, the real-time quote shows on the right-hand of the screen. In the amount field next to the Symbol field, the default text shows "Enter Shares" but next to that is a stack text display with Shares / Dollars. If I click dollars, I can enter a dollar amount.

Note this only works with Vanguard's ETFs. It's not for any ETF / stock. E.g., IXUS -> "Enter Shares" with no toggle for Shares / Dollars.
I don't see the option to toggle to dollars, tried with VTI. This may be a pilot program, like how Vanguard tested online MF to ETF conversions.
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Cheez-It Guy
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by Cheez-It Guy »

Thanks for posting the E-Mail.

This text does appear to indicate that it's only available to a subgroup for the time being:

"Log in to your account for the opportunity to be among the first Vanguard investors to take advantage of this new trading option."

Also can't find any press release.

Thanks for sharing.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by UpperNwGuy »

We're talking about ETFs, people! They only trade during when the market is open. This entire thread began after the market closed today, so all your experiments are doomed to fail. Try tomorrow at 9:35am.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by Lyrrad »

I’m curious as to the price that one will receive for the fractional share amount at Vanguard.

At Fidelity, In my experience, with a dollar value buy order, an integer amount of shares are purchased as a market order (and I occasionally receive some price improvement) but the fractional remainder is purchased at the published Ask price.

With Vanguard, I have received significant price improvement on purchases and sales of Vanguard ETFs, more than what I observed at Fidelity. At Vanguard, over 90% of the time, I receive the exact midpoint of the bid-ask spread when I place a marketable limit order. I find this useful when transacting in lower volume Vanguard ETFs with larger bid-ask spreads.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by anon_investor »

Lyrrad wrote: Wed Dec 01, 2021 9:06 pm I’m curious as to the price that one will receive for the fractional share amount at Vanguard.

At Fidelity, In my experience, with a dollar value buy order, an integer amount of shares are purchased as a market order (and I occasionally receive some price improvement) but the fractional remainder is purchased at the published Ask price.

With Vanguard, I have received significant price improvement on purchases and sales of Vanguard ETFs, more than what I observed at Fidelity. At Vanguard, over 90% of the time, I receive the exact midpoint of the bid-ask spread when I place a marketable limit order. I find this useful when transacting in lower volume Vanguard ETFs with larger bid-ask spreads.
I have a bunch of fractional share purchases at Fidelity (market orders), and I find that sometimes the price for the fractional share portion is higher than the whole share portion, but sometimes it is lower, no consistency.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by runner3081 »

Can't wait to give it a try tomorrow with the $24.xx left in my account after the usual monthly deposit/investment! Always hated having money "on the sideline" in the post-tax account.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by anon_investor »

runner3081 wrote: Wed Dec 01, 2021 10:40 pm Can't wait to give it a try tomorrow with the $24.xx left in my account after the usual monthly deposit/investment! Always hated having money "on the sideline" in the post-tax account.
Please update after you try. :sharebeer
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by runner3081 »

anon_investor wrote: Wed Dec 01, 2021 11:59 pm
runner3081 wrote: Wed Dec 01, 2021 10:40 pm Can't wait to give it a try tomorrow with the $24.xx left in my account after the usual monthly deposit/investment! Always hated having money "on the sideline" in the post-tax account.
Please update after you try. :sharebeer
I don't have that option. No choice of dollars for a VXUS purchase.

"The number of shares must be at least 1."
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by donaldfair71 »

runner3081 wrote: Thu Dec 02, 2021 9:32 am
anon_investor wrote: Wed Dec 01, 2021 11:59 pm
runner3081 wrote: Wed Dec 01, 2021 10:40 pm Can't wait to give it a try tomorrow with the $24.xx left in my account after the usual monthly deposit/investment! Always hated having money "on the sideline" in the post-tax account.
Please update after you try. :sharebeer
I don't have that option. No choice of dollars for a VXUS purchase.

"The number of shares must be at least 1."
Same here. Not one of the chosen few.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by retire2022 »

donaldfair71 wrote: Thu Dec 02, 2021 9:48 am
runner3081 wrote: Thu Dec 02, 2021 9:32 am
anon_investor wrote: Wed Dec 01, 2021 11:59 pm
runner3081 wrote: Wed Dec 01, 2021 10:40 pm Can't wait to give it a try tomorrow with the $24.xx left in my account after the usual monthly deposit/investment! Always hated having money "on the sideline" in the post-tax account.
Please update after you try. :sharebeer
I don't have that option. No choice of dollars for a VXUS purchase.

"The number of shares must be at least 1."
Same here. Not one of the chosen few.
This morning using the Vanguard desktop during trading hours, I attempted to put in fractional share for VOO, aka cents and it did not accept.

I have 95.24 in my Roth settlement account, and it did not allow for submission.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by anon_investor »

UpperNwGuy wrote: Wed Dec 01, 2021 8:26 pm We're talking about ETFs, people! They only trade during when the market is open. This entire thread began after the market closed today, so all your experiments are doomed to fail. Try tomorrow at 9:35am.
No dice, tried just now. It definitely must be a pilot program.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by UpperNwGuy »

anon_investor wrote: Thu Dec 02, 2021 9:58 am
UpperNwGuy wrote: Wed Dec 01, 2021 8:26 pm We're talking about ETFs, people! They only trade during when the market is open. This entire thread began after the market closed today, so all your experiments are doomed to fail. Try tomorrow at 9:35am.
No dice, tried just now. It definitely must be a pilot program.
This inconsistent treatment of customers is becoming characteristic of Vanguard.... some folk have secure messaging, some don't; some Flagship have a personal advisor, some don't; some people can buy fractional ETFs, some cannot.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by anon_investor »

UpperNwGuy wrote: Thu Dec 02, 2021 11:52 am
anon_investor wrote: Thu Dec 02, 2021 9:58 am
UpperNwGuy wrote: Wed Dec 01, 2021 8:26 pm We're talking about ETFs, people! They only trade during when the market is open. This entire thread began after the market closed today, so all your experiments are doomed to fail. Try tomorrow at 9:35am.
No dice, tried just now. It definitely must be a pilot program.
This inconsistent treatment of customers is becoming characteristic of Vanguard.... some folk have secure messaging, some don't; some Flagship have a personal advisor, some don't; some people can buy fractional ETFs, some cannot.
Yeah, they allowed online MF to ETF conversions for a while, my spouse had it and I didn't. I will just go buy my fractional ETFs at Fidelity, where you can place limit orders...
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by happenstance »

I’m very excited by this development, having been using dollar-value trading in my Fidelity HSA this year. I do notice though that sometimes Fidelity leaves a few cents remaining, which I don’t quite understand. I hope Schwab provides this feature soon, too!
UpperNwGuy wrote: Thu Dec 02, 2021 11:52 am
anon_investor wrote: Thu Dec 02, 2021 9:58 am
UpperNwGuy wrote: Wed Dec 01, 2021 8:26 pm We're talking about ETFs, people! They only trade during when the market is open. This entire thread began after the market closed today, so all your experiments are doomed to fail. Try tomorrow at 9:35am.
No dice, tried just now. It definitely must be a pilot program.
This inconsistent treatment of customers is becoming characteristic of Vanguard.... some folk have secure messaging, some don't; some Flagship have a personal advisor, some don't; some people can buy fractional ETFs, some cannot.
I agree. But I would differentiate new tech platform features from taking things away and changing the relationship benefits. It’s tech industry best-practice to make new features available to a small cohort first to get feedback and identify bugs.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by sycamore »

happenstance wrote: Thu Dec 02, 2021 1:43 pm I do notice though that sometimes Fidelity leaves a few cents remaining, which I don’t quite understand....
Here's an example to see why. The stock is trading at $100/share. That's 0.5 shares exactly with no cents remaining.

But if the stock trades at $100.28/share, that's 50/100.28 = 0.49860 shares. Fidelity will round down (see below) to 0.498 shares. Multiply by $100.28/share and you get $49.94 purchase price, with six cents left over.

Footnote per https://www.fidelity.com/learning-cente ... nal-shares:
Fractional share quantities can be entered out to 3 decimal places (.001 as long as the value of the order is at least $1.00). Executions will be rounded down to the nearest .001 shares. Fractional shares or dollar-based orders can be entered out to 2 decimal places (e.g., $250.00), and your order will be converted into shares out to 3 decimal places (.001) and are rounded down to the nearest decimal.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by Eagle33 »

exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
They are taking away the ability to TLH?
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by Parkinglotracer »

exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
I wonder if they Will now do auto rmd’s from accounts with only ETFs in them?

Seems archaic they don’t
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by Parkinglotracer »

exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
I wonder if they Will now do auto rmd’s from accounts with only ETFs in them?

Seems archaic they don’t
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exodusNH
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by exodusNH »

Eagle33 wrote: Fri Dec 03, 2021 2:33 am
exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
They are taking away the ability to TLH?
They're still going to have to track the lots. But if you choose to sell dollar amounts instead of shares, you won't get to choose.

You'll just have to sell whole shares. That doesn't seem like a big deal. Since most ETFs are somewhere between $50 and $250, having to sell an extra share (or choosing to forego $50) is not going to alter any trajectory.
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anon_investor
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by anon_investor »

exodusNH wrote: Fri Dec 03, 2021 8:16 am
Eagle33 wrote: Fri Dec 03, 2021 2:33 am
exodusNH wrote: Wed Dec 01, 2021 4:20 pm Just got this email from them. You can purchase and sell fractional shares of Vanguard ETFs.

They have to go in as market orders. If selling, you don't get to choose specific lots.

Edit: it doesn't look like they support automatic buys of ETFs, though -- still just their mutual funds.
They are taking away the ability to TLH?
They're still going to have to track the lots. But if you choose to sell dollar amounts instead of shares, you won't get to choose.

You'll just have to sell whole shares. That doesn't seem like a big deal. Since most ETFs are somewhere between $50 and $250, having to sell an extra share (or choosing to forego $50) is not going to alter any trajectory.
At Fidelity, you can buy ETFs by dollar amount using limit orders, and you can sell specific tax lots (even if it has fractional shares). So even when Vanguard rolls this out to everyone, I will stick to Fidelity for ETF purchases. Vanguard mutual funds are still probably the best for TLH.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by 5outof10 »

Good bye cash turds!
EF: 20% Interest Checking, 80% VTEB in Taxable | Retirement: 72% VTI, 18% VXUS, 10% BND | I would like to own a gold bar one day, to be able to say I own a gold bar.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by happenstance »

sycamore wrote: Thu Dec 02, 2021 3:02 pm
happenstance wrote: Thu Dec 02, 2021 1:43 pm I do notice though that sometimes Fidelity leaves a few cents remaining, which I don’t quite understand....
Here's an example to see why. The stock is trading at $100/share. That's 0.5 shares exactly with no cents remaining.

But if the stock trades at $100.28/share, that's 50/100.28 = 0.49860 shares. Fidelity will round down (see below) to 0.498 shares. Multiply by $100.28/share and you get $49.94 purchase price, with six cents left over.

Footnote per https://www.fidelity.com/learning-cente ... nal-shares:
Fractional share quantities can be entered out to 3 decimal places (.001 as long as the value of the order is at least $1.00). Executions will be rounded down to the nearest .001 shares. Fractional shares or dollar-based orders can be entered out to 2 decimal places (e.g., $250.00), and your order will be converted into shares out to 3 decimal places (.001) and are rounded down to the nearest decimal.
Thanks for the explanation—I had not seen that note about rounding!

To provide another, real worked example: I wanted to buy $26.62 of FNDC. The trade executed at $39.74 and I got 0.669 shares (0.669854 rounded down). 0.669*$39.74 = $26.58606, which rounded to $26.59 and left me with 3¢ in the sweep account.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by stan1 »

So was anyone able to buy fractional shares earlier this week while the market was open?

Please keep us updated (especially on how cost basis is recorded for the fractional shares). I'd want to make sure that purchases in dollars using fractional shares are recorded using the cost basis method elected for the holding.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by 5outof10 »

Whatever happened with this?

I am too excited for this.

I haven't seen anything on Vanguard's website about this either (or any news source).
EF: 20% Interest Checking, 80% VTEB in Taxable | Retirement: 72% VTI, 18% VXUS, 10% BND | I would like to own a gold bar one day, to be able to say I own a gold bar.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by exodusNH »

5outof10 wrote: Mon Dec 06, 2021 9:55 pm Whatever happened with this?

I am too excited for this.

I haven't seen anything on Vanguard's website about this either (or any news source).
I still have the option. When I logged in earlier today, my welcome image was referencing it.

I haven't needed to buy anything this week and so haven't tried it out yet.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by inbox788 »

anon_investor wrote: Wed Dec 01, 2021 9:11 pmI have a bunch of fractional share purchases at Fidelity (market orders), and I find that sometimes the price for the fractional share portion is higher than the whole share portion, but sometimes it is lower, no consistency.
That makes perfect sense. Sometimes the market is moving up $0.001 and other it's moving down $0.001. If it was consistently going up, Vanguard would be doing some funny business rounding.

FWIW, I tried Fidelity fractional recently and have $0.06 cents left over due to rounding. I don't recall if it let me specify cents on the order.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by anon_investor »

inbox788 wrote: Tue Dec 07, 2021 2:53 pm
anon_investor wrote: Wed Dec 01, 2021 9:11 pmI have a bunch of fractional share purchases at Fidelity (market orders), and I find that sometimes the price for the fractional share portion is higher than the whole share portion, but sometimes it is lower, no consistency.
That makes perfect sense. Sometimes the market is moving up $0.001 and other it's moving down $0.001. If it was consistently going up, Vanguard would be doing some funny business rounding.

FWIW, I tried Fidelity fractional recently and have $0.06 cents left over due to rounding. I don't recall if it let me specify cents on the order.
You can enter cents in your purchase order for ETFs (when using dollar amount vs. share count) but due to rounding, you will usually end up with a few cents. Since I buy ETFs every 2 weeks on pay day, I just add that left over cents from the prior purchase to my order. I have gotten used to it. A few cents left over is better than having $100 left over every pay day.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by 5outof10 »

exodusNH wrote: Mon Dec 06, 2021 11:10 pm
5outof10 wrote: Mon Dec 06, 2021 9:55 pm Whatever happened with this?

I am too excited for this.

I haven't seen anything on Vanguard's website about this either (or any news source).
I still have the option. When I logged in earlier today, my welcome image was referencing it.

I haven't needed to buy anything this week and so haven't tried it out yet.
Thanks for following up.

I can't wait. Hopefully they release this capability to all investors for a Christmas present!

It is going to be so exciting to get rid of the cash turds.

I hope if you see something stating when it will be released to all of us that you come back and share.

Thanks again!
EF: 20% Interest Checking, 80% VTEB in Taxable | Retirement: 72% VTI, 18% VXUS, 10% BND | I would like to own a gold bar one day, to be able to say I own a gold bar.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by exodusNH »

5outof10 wrote: Thu Dec 09, 2021 10:16 pm
exodusNH wrote: Mon Dec 06, 2021 11:10 pm
5outof10 wrote: Mon Dec 06, 2021 9:55 pm Whatever happened with this?

I am too excited for this.

I haven't seen anything on Vanguard's website about this either (or any news source).
I still have the option. When I logged in earlier today, my welcome image was referencing it.

I haven't needed to buy anything this week and so haven't tried it out yet.
Thanks for following up.

I can't wait. Hopefully they release this capability to all investors for a Christmas present!

It is going to be so exciting to get rid of the cash turds.

I hope if you see something stating when it will be released to all of us that you come back and share.

Thanks again!
I actually used the feature today. I closed our a modest taxable account at American Funds. I'm using the proceeds for my 2022 I bonds, to pay off a 0% card before the rate expires, and the rest to Vanguard. (I have months left on the card but have realized I don't like the debt looming over me.)

Bought VTI, VEA, and VWO in dollar amounts. Vanguard showed the estimated shares to 4 decimal places.

I too hate those cash turds. I keep VTSAX in my Roth to flush them away.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by stan1 »

exodusNH wrote: Thu Dec 09, 2021 11:20 pm
I actually used the feature today. I closed our a modest taxable account at American Funds. I'm using the proceeds for my 2022 I bonds, to pay off a 0% card before the rate expires, and the rest to Vanguard. (I have months left on the card but have realized I don't like the debt looming over me.)

Bought VTI, VEA, and VWO in dollar amounts. Vanguard showed the estimated shares to 4 decimal places.

I too hate those cash turds. I keep VTSAX in my Roth to flush them away.
Seems like you are the only person on the forum who has this feature. If you could please report back in a few days and let us know how the trade settled and reassure us that the fractional shares reflect Specific ID cost basis (if that's your chosen cost basis method).

Much appreciated, glad this capability is finally here. I figured Vanguard would do it eventually.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by exodusNH »

stan1 wrote: Sat Dec 11, 2021 6:34 pm
exodusNH wrote: Thu Dec 09, 2021 11:20 pm
I actually used the feature today. I closed our a modest taxable account at American Funds. I'm using the proceeds for my 2022 I bonds, to pay off a 0% card before the rate expires, and the rest to Vanguard. (I have months left on the card but have realized I don't like the debt looming over me.)

Bought VTI, VEA, and VWO in dollar amounts. Vanguard showed the estimated shares to 4 decimal places.

I too hate those cash turds. I keep VTSAX in my Roth to flush them away.
Seems like you are the only person on the forum who has this feature. If you could please report back in a few days and let us know how the trade settled and reassure us that the fractional shares reflect Specific ID cost basis (if that's your chosen cost basis method).

Much appreciated, glad this capability is finally here. I figured Vanguard would do it eventually.
Will do! Crazy that I got selected since I only ever buy, not sell. I only started using ETFs in January, in my IRA since the $6k limit didn't allow me to meet the $3k fund minimums.

As I've gotten more comfortable, I have switched to ETFs in my taxable except for the auto investments.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by stan1 »

stan1 wrote: Sat Dec 11, 2021 6:34 pm
exodusNH wrote: Thu Dec 09, 2021 11:20 pm
I actually used the feature today. I closed our a modest taxable account at American Funds. I'm using the proceeds for my 2022 I bonds, to pay off a 0% card before the rate expires, and the rest to Vanguard. (I have months left on the card but have realized I don't like the debt looming over me.)

Bought VTI, VEA, and VWO in dollar amounts. Vanguard showed the estimated shares to 4 decimal places.

I too hate those cash turds. I keep VTSAX in my Roth to flush them away.
Seems like you are the only person on the forum who has this feature. If you could please report back in a few days and let us know how the trade settled and reassure us that the fractional shares reflect Specific ID cost basis (if that's your chosen cost basis method).

Much appreciated, glad this capability is finally here. I figured Vanguard would do it eventually.
Did your trade settle earlier this week? Still curious how Vanguard tracked the cost basis.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by exodusNH »

stan1 wrote: Thu Dec 16, 2021 12:28 pm
stan1 wrote: Sat Dec 11, 2021 6:34 pm
exodusNH wrote: Thu Dec 09, 2021 11:20 pm
I actually used the feature today. I closed our a modest taxable account at American Funds. I'm using the proceeds for my 2022 I bonds, to pay off a 0% card before the rate expires, and the rest to Vanguard. (I have months left on the card but have realized I don't like the debt looming over me.)

Bought VTI, VEA, and VWO in dollar amounts. Vanguard showed the estimated shares to 4 decimal places.

I too hate those cash turds. I keep VTSAX in my Roth to flush them away.
Seems like you are the only person on the forum who has this feature. If you could please report back in a few days and let us know how the trade settled and reassure us that the fractional shares reflect Specific ID cost basis (if that's your chosen cost basis method).

Much appreciated, glad this capability is finally here. I figured Vanguard would do it eventually.
Did your trade settle earlier this week? Still curious how Vanguard tracked the cost basis.
It shows single tax lots for the entire purchase. E.g. 39.2678 @ $51.09 and 3.7386 @ $50.29.

It looks just like how a dividend reinvestment would look.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by 5outof10 »

Fantastic.

Thanks for reporting back exodusNH.

Still waiting for Vanguard to release this ability to all of us as a Christmas present!
EF: 20% Interest Checking, 80% VTEB in Taxable | Retirement: 72% VTI, 18% VXUS, 10% BND | I would like to own a gold bar one day, to be able to say I own a gold bar.
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Re: Vanguard now allows purchase/sale of dollar amounts for Vanguard ETFs (fractional purchases) (might be in pilot phas

Post by CashConfessions »

Weirdly, I had the ability to buy in dollars a few days ago (when doing beginning of year backdoor Roth IRA conversion/purchase), and now I don't anymore. Just thought I'd share the change.
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