Vanguard Auto Buy ETFs

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capybara11
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Vanguard Auto Buy ETFs

Post by capybara11 »

I logged onto Vanguard tonight and noticed the dashboard looked different. There was an additional tile with buttons to transfer money and set up automatic investments. So I clicked on the automatic investments button and was amazed to see that scheduling ETF purchases was an option. It mentions this is a limited, pre-release version, but there appears to be options for monthly, biweekly, and weekly purchasing.

Is anyone else seeing this on the Vanguard website?
exodusNH
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Re: Vanguard Auto Buy ETFs

Post by exodusNH »

capybara11 wrote: Thu Apr 25, 2024 9:14 pm I logged onto Vanguard tonight and noticed the dashboard looked different. There was an additional tile with buttons to transfer money and set up automatic investments. So I clicked on the automatic investments button and was amazed to see that scheduling ETF purchases was an option. It mentions this is a limited, pre-release version, but there appears to be options for monthly, biweekly, and weekly purchasing.

Is anyone else seeing this on the Vanguard website?
Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.

If you're buying 0.5 of VOO every week, you're going to be miserable.
DefDetBen
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Re: Vanguard Auto Buy ETFs

Post by DefDetBen »

I don't appear to have that option. I'm curious, does it work for all ETFs or just Vanguard ETFs?
exodusNH wrote: Thu Apr 25, 2024 10:50 pm Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.

If you're buying 0.5 of VOO every week, you're going to be miserable.
Aren't you likely to end up with fractional shares over time due to dividend reinvestment, regardless of what units you buy them in?
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capybara11
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Re: Vanguard Auto Buy ETFs

Post by capybara11 »

It only has this option available for Vanguard ETFs.
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beyou
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Re: Vanguard Auto Buy ETFs

Post by beyou »

While I would not auto purchase, they have a similar restriction of Vanguard only for manual purchase of fractional shares.

Note the problems are 2.

1) The industry does not support fractional shares as a whole. If you transfer to any other broker, you can only transfer whole shares. They sell off the fractional shares before transfer. Auto invest of a $ amt requires support of frac shares if you want a fixed $ amt.

2) There is more risk to Vanguard if your source of funds turns out to be reversed, if the $ were used to buy non-Vanguard products. Why should they take more risk for no reward (no aum fees collected on 3rd party funds). In fact even Vanguard ETF is riskier to them than Vanguard open end funds, but at least they are compensated for the risk for their own ETF. Is there a $ limit to how much you can buy ? Or does the settlement acct require the balance on deposit vs can you automated pull from a bank to pay ? They always allowed pull from a bank for open end funds, knowing they have control over open end fund shares (restrict sales until fully cleared).
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capybara11
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Re: Vanguard Auto Buy ETFs

Post by capybara11 »

It appears the minimum buy amount is $1 and the maximum $25,000 for recurring purchases.

I wasn’t able to set up a bank transfer with the auto ETF buy purchase. I had to set up a bank transfer separately. It will only pull money from the settlement fund and not directly from my bank account.
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Re: Vanguard Auto Buy ETFs

Post by exodusNH »

DefDetBen wrote: Fri Apr 26, 2024 12:11 am I don't appear to have that option. I'm curious, does it work for all ETFs or just Vanguard ETFs?
exodusNH wrote: Thu Apr 25, 2024 10:50 pm Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.

If you're buying 0.5 of VOO every week, you're going to be miserable.
Aren't you likely to end up with fractional shares over time due to dividend reinvestment, regardless of what units you buy them in?
Yes. And it's a nightmare. I've turned off reinvestment and manually reinvest with whole shares only.

There is no way to sell a lot that has less than one share.

As long as you have at least one share, you can sell the whole number of shares in the lot. Vanguard will then liquidate the partial remainder at the end of the day.

But if you start with 0.4581 shares, due to reinvestment being less than one share, there is no way to sell that lot with specific ID.

The interface requires you to tell it how many shares you want to sell. You can't enter 0 or a non-whole number.

If you type 1, and select the 0.4581 lot, you can't submit because 0.4581 doesn't equal 1. If you select 1 from another lot and add the partial lot, you can't continue because 1.4581 does not equal 1.

The only scenario where this might work is if you had numerous partial lots that, by chance, happened to add up to a whole number.
dburkes
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Re: Vanguard Auto Buy ETFs

Post by dburkes »

I noticed this too and was pleasantly surprised. I might use the ETF auto-investment feature, but I can't find any documentation on when they actually do the buy- is it on market open, or at some predetermined later time, or based on some market volatility heuristic, or what?

Has anyone been able to find a definitive statement about buy order timing?
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Re: Vanguard Auto Buy ETFs

Post by CyclingDuo »

capybara11 wrote: Thu Apr 25, 2024 9:14 pm I logged onto Vanguard tonight and noticed the dashboard looked different. There was an additional tile with buttons to transfer money and set up automatic investments. So I clicked on the automatic investments button and was amazed to see that scheduling ETF purchases was an option. It mentions this is a limited, pre-release version, but there appears to be options for monthly, biweekly, and weekly purchasing.

Is anyone else seeing this on the Vanguard website?
Yes. I saw it and was pleased as it eliminates one step of the process from me having to go in and manually invest the funds once they have arrived at Vanguard each and every month into the respective ETFs that we use. I set ours up, and do the same at other brokerages that have the recurring investment feature using the $$ amount as opposed to number of shares. We've been automatically reinvesting dividends for years, so we are not worried about the partial share amounts when it comes to selling during the decumulation phase.

Glad Vanguard has introduced this feature for ETF investors. :beer

CyclingDuo
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capybara11
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Re: Vanguard Auto Buy ETFs

Post by capybara11 »

I found a terms and agreements page that described the process.

Vanguard will try to purchase ETF shares in bulk for everyone enrolled in scheduled investments for that particular day. In theory, the cost basis per share should be the same for each person.

However, they reserved the right to purchase shares without putting everyone in this investment pool, so the cost basis could be different for one person versus another.

I can’t remember seeing anything specific about trade execution timing.
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capybara11
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Re: Vanguard Auto Buy ETFs

Post by capybara11 »

exodusNH wrote: Fri Apr 26, 2024 7:15 am
DefDetBen wrote: Fri Apr 26, 2024 12:11 am I don't appear to have that option. I'm curious, does it work for all ETFs or just Vanguard ETFs?
exodusNH wrote: Thu Apr 25, 2024 10:50 pm Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.

If you're buying 0.5 of VOO every week, you're going to be miserable.
Aren't you likely to end up with fractional shares over time due to dividend reinvestment, regardless of what units you buy them in?
Yes. And it's a nightmare. I've turned off reinvestment and manually reinvest with whole shares only.

There is no way to sell a lot that has less than one share.

As long as you have at least one share, you can sell the whole number of shares in the lot. Vanguard will then liquidate the partial remainder at the end of the day.

But if you start with 0.4581 shares, due to reinvestment being less than one share, there is no way to sell that lot with specific ID.

The interface requires you to tell it how many shares you want to sell. You can't enter 0 or a non-whole number.

If you type 1, and select the 0.4581 lot, you can't submit because 0.4581 doesn't equal 1. If you select 1 from another lot and add the partial lot, you can't continue because 1.4581 does not equal 1.

The only scenario where this might work is if you had numerous partial lots that, by chance, happened to add up to a whole number.

Yeah, things get convoluted if you have less than one share.

Couldn’t you execute a dollar based trade to remove the 0.4581 lot? (assuming you don’t have any other lots) This trade wouldn’t use specific ID basis, but it would be something else like FIFO, which would behave like specific ID since you only have one lot.

If you have multiple fractional lots, couldn’t you trade using whole share numbers? You would select the fractional lots you were interested in selling, and if those don’t add up to a whole number, you could reduce the amount of fractional shares you are selling in one of the lots. You can assign a portion of a fractional lot to the trade, as long as the total number of shares in the trade is a whole number.

I hope they simplify the specific lots process when selling fractional shares. All these steps should not be needed
exodusNH
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Re: Vanguard Auto Buy ETFs

Post by exodusNH »

capybara11 wrote: Fri Apr 26, 2024 2:25 pm
exodusNH wrote: Fri Apr 26, 2024 7:15 am
DefDetBen wrote: Fri Apr 26, 2024 12:11 am I don't appear to have that option. I'm curious, does it work for all ETFs or just Vanguard ETFs?
exodusNH wrote: Thu Apr 25, 2024 10:50 pm Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.

If you're buying 0.5 of VOO every week, you're going to be miserable.
Aren't you likely to end up with fractional shares over time due to dividend reinvestment, regardless of what units you buy them in?
Yes. And it's a nightmare. I've turned off reinvestment and manually reinvest with whole shares only.

There is no way to sell a lot that has less than one share.

As long as you have at least one share, you can sell the whole number of shares in the lot. Vanguard will then liquidate the partial remainder at the end of the day.

But if you start with 0.4581 shares, due to reinvestment being less than one share, there is no way to sell that lot with specific ID.

The interface requires you to tell it how many shares you want to sell. You can't enter 0 or a non-whole number.

If you type 1, and select the 0.4581 lot, you can't submit because 0.4581 doesn't equal 1. If you select 1 from another lot and add the partial lot, you can't continue because 1.4581 does not equal 1.

The only scenario where this might work is if you had numerous partial lots that, by chance, happened to add up to a whole number.

Yeah, things get convoluted if you have less than one share.

Couldn’t you execute a dollar based trade to remove the 0.4581 lot? (assuming you don’t have any other lots) This trade wouldn’t use specific ID basis, but it would be something else like FIFO, which would behave like specific ID since you only have one lot.

If you have multiple fractional lots, couldn’t you trade using whole share numbers? You would select the fractional lots you were interested in selling, and if those don’t add up to a whole number, you could reduce the amount of fractional shares you are selling in one of the lots. You can assign a portion of a fractional lot to the trade, as long as the total number of shares in the trade is a whole number.

I hope they simplify the specific lots process when selling fractional shares. All these steps should not be needed
In theory, a dollar sale could work, but at the expense of selling lots you don't want to sell. I fear they would not liquidate multiple partial lots to fulfill that, though.

I hadn't thought of trying to sell less than a partial lot, e.g. 0.3 of a lot that has 0.4581. However, I just tried that by entering in a share sale of 1, then choosing 0.3 and 0.7 of different lots. It got as far as the confirmation page. Maybe it would work? I feared clicking confirm as the chance of crashing their system seemed greater than 0. :wink:

Presumably they'd then liquidate the remainder of those lots after. It's certainly an intriguing idea!
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Re: Vanguard Auto Buy ETFs

Post by hornet96 »

exodusNH wrote: Fri Apr 26, 2024 5:13 pm
capybara11 wrote: Fri Apr 26, 2024 2:25 pm
exodusNH wrote: Fri Apr 26, 2024 7:15 am
DefDetBen wrote: Fri Apr 26, 2024 12:11 am I don't appear to have that option. I'm curious, does it work for all ETFs or just Vanguard ETFs?
exodusNH wrote: Thu Apr 25, 2024 10:50 pm Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.

If you're buying 0.5 of VOO every week, you're going to be miserable.
Aren't you likely to end up with fractional shares over time due to dividend reinvestment, regardless of what units you buy them in?
Yes. And it's a nightmare. I've turned off reinvestment and manually reinvest with whole shares only.

There is no way to sell a lot that has less than one share.

As long as you have at least one share, you can sell the whole number of shares in the lot. Vanguard will then liquidate the partial remainder at the end of the day.

But if you start with 0.4581 shares, due to reinvestment being less than one share, there is no way to sell that lot with specific ID.

The interface requires you to tell it how many shares you want to sell. You can't enter 0 or a non-whole number.

If you type 1, and select the 0.4581 lot, you can't submit because 0.4581 doesn't equal 1. If you select 1 from another lot and add the partial lot, you can't continue because 1.4581 does not equal 1.

The only scenario where this might work is if you had numerous partial lots that, by chance, happened to add up to a whole number.

Yeah, things get convoluted if you have less than one share.

Couldn’t you execute a dollar based trade to remove the 0.4581 lot? (assuming you don’t have any other lots) This trade wouldn’t use specific ID basis, but it would be something else like FIFO, which would behave like specific ID since you only have one lot.

If you have multiple fractional lots, couldn’t you trade using whole share numbers? You would select the fractional lots you were interested in selling, and if those don’t add up to a whole number, you could reduce the amount of fractional shares you are selling in one of the lots. You can assign a portion of a fractional lot to the trade, as long as the total number of shares in the trade is a whole number.

I hope they simplify the specific lots process when selling fractional shares. All these steps should not be needed
In theory, a dollar sale could work, but at the expense of selling lots you don't want to sell. I fear they would not liquidate multiple partial lots to fulfill that, though.

I hadn't thought of trying to sell less than a partial lot, e.g. 0.3 of a lot that has 0.4581. However, I just tried that by entering in a share sale of 1, then choosing 0.3 and 0.7 of different lots. It got as far as the confirmation page. Maybe it would work? I feared clicking confirm as the chance of crashing their system seemed greater than 0. :wink:

Presumably they'd then liquidate the remainder of those lots after. It's certainly an intriguing idea!
Yes, I can confirm that this works. I did this a couple of months ago. It’s very cumbersome but it does work.
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Re: Vanguard Auto Buy ETFs

Post by slondr »

beyou wrote: Fri Apr 26, 2024 6:39 am 1) The industry does not support fractional shares as a whole. If you transfer to any other broker, you can only transfer whole shares. They sell off the fractional shares before transfer.
Or, in the case of partial transfers, at least with Schwab, they just don't sell your fractional shares at all and leave you with a tiny holding that's still in the market.
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Re: Vanguard Auto Buy ETFs

Post by Phaedrus »

Does Vanguard -- or any broker -- allow one to auto-invest in ETFs based on whole number of shares (instead of dollars)? For example, buying 10 shares of VTI every month?

If not, does anyone allow you to invest only in whole shares (e.g. to specify to invest approximately $X, but rounded down to the nearest whole share?
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Re: Vanguard Auto Buy ETFs

Post by beyou »

slondr wrote: Fri Apr 26, 2024 5:47 pm
beyou wrote: Fri Apr 26, 2024 6:39 am 1) The industry does not support fractional shares as a whole. If you transfer to any other broker, you can only transfer whole shares. They sell off the fractional shares before transfer.
Or, in the case of partial transfers, at least with Schwab, they just don't sell your fractional shares at all and leave you with a tiny holding that's still in the market.
I only buy fractional shares when I have dividend reinvestment (in IRAs).
No matter what Vanguard and Fidelity tell you, this is not really supported by the industry.
For taxable accounts where I do not reinvest, I only buy whole shares despite allowing us to buy fractional.
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Re: Vanguard Auto Buy ETFs

Post by slondr »

beyou wrote: Sat Apr 27, 2024 12:31 am
slondr wrote: Fri Apr 26, 2024 5:47 pm
beyou wrote: Fri Apr 26, 2024 6:39 am 1) The industry does not support fractional shares as a whole. If you transfer to any other broker, you can only transfer whole shares. They sell off the fractional shares before transfer.
Or, in the case of partial transfers, at least with Schwab, they just don't sell your fractional shares at all and leave you with a tiny holding that's still in the market.
I only buy fractional shares when I have dividend reinvestment (in IRAs).
No matter what Vanguard and Fidelity tell you, this is not really supported by the industry.
For taxable accounts where I do not reinvest, I only buy whole shares despite allowing us to buy fractional.
I haven't cared as much because the total fractional shares for a given security will always be less than the market price of that security, which for ETFs is usually pretty low. VT is about $108, VGIT about $57. That's not a lot of loose change to manage manually.
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Re: Vanguard Auto Buy ETFs

Post by beyou »

slondr wrote: Sat Apr 27, 2024 7:46 am
beyou wrote: Sat Apr 27, 2024 12:31 am
slondr wrote: Fri Apr 26, 2024 5:47 pm
beyou wrote: Fri Apr 26, 2024 6:39 am 1) The industry does not support fractional shares as a whole. If you transfer to any other broker, you can only transfer whole shares. They sell off the fractional shares before transfer.
Or, in the case of partial transfers, at least with Schwab, they just don't sell your fractional shares at all and leave you with a tiny holding that's still in the market.
I only buy fractional shares when I have dividend reinvestment (in IRAs).
No matter what Vanguard and Fidelity tell you, this is not really supported by the industry.
For taxable accounts where I do not reinvest, I only buy whole shares despite allowing us to buy fractional.
I haven't cared as much because the total fractional shares for a given security will always be less than the market price of that security, which for ETFs is usually pretty low. VT is about $108, VGIT about $57. That's not a lot of loose change to manage manually.
True but there are other reasons I do not reinvest (in taxable) besides fractional shares.
And at initial purchases, there isn't a compelling reason to buy fractional shares.
But I agree with your comment and wont lose any sleep over $50-$100 that can't be transferred.
I have no plans to transfer soon, so not a big deal and not alot if I change my mind.
I can see why they do this, so that ETFs can function more like open end funds in terms of investing $ not shares, and for reinvestment.
But I have no issue with trading shares over $, since I only manually buy and never auto-invest.
I didn't even auto-invest back when I used to mainly invest in open end funds, outside of dividend reinvestments in IRA.
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capybara11
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Re: Vanguard Auto Buy ETFs

Post by capybara11 »

I scheduled an ETF purchase for today, and it executed successfully around 10:49 am ET.

I made sure there was enough money in the settlement fund before the automatic purchase executed.
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When will Vanguard allow auto monthly contribs to ETFs?

Post by JET1005 »

[Thread merged into here --admin LadyGeek]

Does anyone know when Vanguard will start allowing automatic monthly contributions to be made to their ETFs? I called and spoke to a rep who had no idea. Most of my portfolio is in ETFs now and am bummed that I can't contribute monthly to these investments like I could do with my index funds.
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by PersonalFinanceJam »

I thought they already rolled out this feature a few weeks ago? Did you check this thread?
viewtopic.php?t=430540
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by JET1005 »

PersonalFinanceJam wrote: Thu May 16, 2024 10:44 am I thought they already rolled out this feature a few weeks ago? Did you check this thread?
viewtopic.php?t=430540
Not to the general public. It appears to be by invite only. Not sure how long the pilot will last. Thank you for that link. I'm curious why some members in that other thread are not fans of this investment approach for ETFs. I can understand if you sell this might pose a challenge with the fractional shares, but should be a non-issue for buy and hold investors shouldn't it?
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by alex_686 »

JET1005 wrote: Thu May 16, 2024 11:41 am Not to the general public. It appears to be by invite only. Not sure how long the pilot will last. Thank you for that link. I'm curious why some members in that other thread are not fans of this investment approach for ETFs. I can understand if you sell this might pose a challenge with the fractional shares, but should be a non-issue for buy and hold investors shouldn't it?
The plumbing behind this is very complex. This is something that is going to work smooth as silk 99% of the time and is going to fail miserable 1% of the time. You don't want to push a large order out when the market is illiquid. You need to make sure the client has cash, so you need to be aware of unsettled trades, holds on checks, dividends rolling in, etc.

It is the edge and corner cases which will kill you.

I am sure that there is a small team of humans sitting on this process, ironing out the details. I suspect it will take months to work out the kinks, before it can go fully automated, before it is released to the general public.
Last edited by alex_686 on Thu May 16, 2024 12:44 pm, edited 1 time in total.
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by capybara11 »

When I visit the ETF automatic investment page, it still mentions this feature is in pre-release.

It could be several months or longer before this is officially released.
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by sycamore »

JET1005 wrote: Thu May 16, 2024 11:41 am
PersonalFinanceJam wrote: Thu May 16, 2024 10:44 am I thought they already rolled out this feature a few weeks ago? Did you check this thread?
viewtopic.php?t=430540
Not to the general public. It appears to be by invite only. Not sure how long the pilot will last. Thank you for that link. I'm curious why some members in that other thread are not fans of this investment approach for ETFs. I can understand if you sell this might pose a challenge with the fractional shares, but should be a non-issue for buy and hold investors shouldn't it?
I can't tell you why some people don't like it so much. But this is personal finance; there's no accounting for taste.

Anyway I suppose dealing with many many shares lots (hundreds built up over years) seems like too much complexity for some. Especially in taxable where you probably want to use actual cost basis (Spec ID) so you can manage sales for the least tax impact.

Such management requires sufficient attention and focus. Some folks would prefer not to deal with that.
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by PersonalFinanceJam »

JET1005 wrote: Thu May 16, 2024 11:41 am
PersonalFinanceJam wrote: Thu May 16, 2024 10:44 am I thought they already rolled out this feature a few weeks ago? Did you check this thread?
viewtopic.php?t=430540
Not to the general public. It appears to be by invite only. Not sure how long the pilot will last. Thank you for that link. I'm curious why some members in that other thread are not fans of this investment approach for ETFs. I can understand if you sell this might pose a challenge with the fractional shares, but should be a non-issue for buy and hold investors shouldn't it?
I don't use Vanguard anymore but this is my understanding based on that thread and some screenshots I've seen. At some point you will have to sell shares even for a buy and hold investor. Vanguard's interface is overall cumbersome for selling. If you want to use specific identification of shares to sell then this becomes a bit worse for shares which are not attached to a whole share. This seems to be most impactful for tax loss harvesting in a taxable account. This is probably less of an issue in a tax advantaged account where you care less about which shares are being sold.

Anyone can correct me, but this is my understanding. I will say I like Fidelity's implementation of this and the fact they don't limit it to a single family of funds.
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Re: When will Vanguard allow auto monthly contribs to ETFs?

Post by exodusNH »

PersonalFinanceJam wrote: Thu May 16, 2024 12:26 pm
JET1005 wrote: Thu May 16, 2024 11:41 am
PersonalFinanceJam wrote: Thu May 16, 2024 10:44 am I thought they already rolled out this feature a few weeks ago? Did you check this thread?
viewtopic.php?t=430540
Not to the general public. It appears to be by invite only. Not sure how long the pilot will last. Thank you for that link. I'm curious why some members in that other thread are not fans of this investment approach for ETFs. I can understand if you sell this might pose a challenge with the fractional shares, but should be a non-issue for buy and hold investors shouldn't it?
I don't use Vanguard anymore but this is my understanding based on that thread and some screenshots I've seen. At some point you will have to sell shares even for a buy and hold investor. Vanguard's interface is overall cumbersome for selling. If you want to use specific identification of shares to sell then this becomes a bit worse for shares which are not attached to a whole share. This seems to be most impactful for tax loss harvesting in a taxable account. This is probably less of an issue in a tax advantaged account where you care less about which shares are being sold.

Anyone can correct me, but this is my understanding. I will say I like Fidelity's implementation of this and the fact they don't limit it to a single family of funds.
Yes. Their interface is garbage. It IS actually possible to sell partial lots, but it's not intuitive.

If one is going to use this feature, one's life will be infinitely easier if the automatic investment buys at least one share. The interface is easier to understand when you have 1.x shares vs 0.x.
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Re: Vanguard Auto Buy ETFs

Post by LadyGeek »

I merged JET1005's thread into a similar discussion.

(Thanks to the member who reported the post and provided a link to this thread.)
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Vanguard ETF Automatic Investment Available Now!!

Post by o'pinion »

[Post merged into existing discussion - moderator Kendall]

I just logged onto my Vanguard account and was able to set up a monthly automatic ETF investment into 4 separate Vanguard ETFs (VTI, VXUS, VBR, & VSS) using US dollar amounts at regular intervals—monthly in my case!

Monthly mutual fund automatic investment was always available, but ETF autoinvest wasn’t previously. It is now, and the setup was easy! I am so happy with the option. I can truly set it and forget it now. :happy

From Vanguard’s site:
—-Automatic ETF investments—-
“Purchase Vanguard ETFs on a recurring schedule.
*This is a limited, pre-release version of automatic investing.
Some features are not yet available. We are continually working on additional enhancements.”

Just wanted to share the news, as I never received a notification from Vanguard on the new feature.
Stovila
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Joined: Fri Jul 01, 2016 6:00 am

Re: Vanguard Auto Buy ETFs

Post by Stovila »

Mind to share the screenshot where this option is located? I don’t see it on my end and wondering if I am looking at the wrong section..
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CyclingDuo
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Re: Vanguard Auto Buy ETFs

Post by CyclingDuo »

Stovila wrote: Mon Jun 10, 2024 12:39 pm Mind to share the screenshot where this option is located? I don’t see it on my end and wondering if I am looking at the wrong section..
Go to the Dashboard after you login. Over on the right side, you should see this...

Image

Click on the link entitled Add/maintain automatic investments which will take you to the next page where you should see this...

Image

Assuming you have already set up the Schedule a recurring bank transfer to have money coming into your account on a regular basis to fund the purchase of ETF shares, you simply select the Vanguard ETFs - schedule recurring purchases. If not, set up the recurring bank transfer first, then proceed with the recurring ETF purchase.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
Stovila
Posts: 14
Joined: Fri Jul 01, 2016 6:00 am

Re: Vanguard Auto Buy ETFs

Post by Stovila »

Nooo, I don’t have that beautiful buttons 😭😭 - any idea when will they launch it? This will make life much easier
Stovila
Posts: 14
Joined: Fri Jul 01, 2016 6:00 am

Re: Vanguard Auto Buy ETFs

Post by Stovila »

And does it work with automatic recurring withdrawal as well? Auto sell the ETF.
CyclingDuo wrote: Tue Jun 11, 2024 9:04 am
Stovila wrote: Mon Jun 10, 2024 12:39 pm Mind to share the screenshot where this option is located? I don’t see it on my end and wondering if I am looking at the wrong section..
Go to the Dashboard after you login. Over on the right side, you should see this...

Image

Click on the link entitled Add/maintain automatic investments which will take you to the next page where you should see this...

Image

Assuming you have already set up the Schedule a recurring bank transfer to have money coming into your account on a regular basis to fund the purchase of ETF shares, you simply select the Vanguard ETFs - schedule recurring purchases. If not, set up the recurring bank transfer first, then proceed with the recurring ETF purchase.

CyclingDuo
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CyclingDuo
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Re: Vanguard Auto Buy ETFs

Post by CyclingDuo »

Stovila wrote: Wed Jun 12, 2024 1:00 amAnd does it work with automatic recurring withdrawal as well? Auto sell the ETF.
No, I don't think you can use automatic recurring withdrawals from ETFs. You can with mutual funds held at Vanguard, but I don't see how it would work with an ETF that trades like a "stock" at different prices throughout the trading day.

Truth be told, I haven't really had the need to even look into that as we are still in the accumulation phase of our investing journey. Perhaps somebody else can respond to clarify if automatic withdrawals from an ETF are even possible. My assumption is it is still a manual transaction that you have to do with a few clicks to sell the investment first. If not reinvesting the dividends/coupons, the dividends/coupons that go into your settlement account from an ETF could be set up for automatic withdrawals from Vanguard to your bank account.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
slondr
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Re: Vanguard Auto Buy ETFs

Post by slondr »

CyclingDuo wrote: Thu Jun 13, 2024 8:21 am
Stovila wrote: Wed Jun 12, 2024 1:00 amAnd does it work with automatic recurring withdrawal as well? Auto sell the ETF.
No, I don't think you can use automatic recurring withdrawals from ETFs. You can with mutual funds held at Vanguard, but I don't see how it would work with an ETF that trades like a "stock" at different prices throughout the trading day.
Market sell orders exist just like market buy orders exist.
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CyclingDuo
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Re: Vanguard Auto Buy ETFs

Post by CyclingDuo »

slondr wrote: Thu Jun 13, 2024 7:59 pm
CyclingDuo wrote: Thu Jun 13, 2024 8:21 am
Stovila wrote: Wed Jun 12, 2024 1:00 amAnd does it work with automatic recurring withdrawal as well? Auto sell the ETF.
No, I don't think you can use automatic recurring withdrawals from ETFs. You can with mutual funds held at Vanguard, but I don't see how it would work with an ETF that trades like a "stock" at different prices throughout the trading day.
Market sell orders exist just like market buy orders exist.
Hmmm...

Do you see the option to set up automatic recurring sells with the ETFs in your Vanguard account? I don't see it in mine. It only gives the option to do that with the mutual funds we own, or the settlement fund to set up for recurring sells. Not for the ETFs. If you see it, post up a screenshot with the links in case I am overlooking that option in my account.

TIA

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
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