etf investing strategy

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Smk18
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Joined: Tue Sep 11, 2018 4:16 pm

etf investing strategy

Post by Smk18 » Thu Sep 13, 2018 11:25 am

Hello,
How to invest regularly in etf's like VTI ? Is it better to invest in it during lows or it should be irrespective of the market ? How does it compare with regular monthly investing in index funds .
Thank You.

PFInterest
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Joined: Sun Jan 08, 2017 12:25 pm

Re: etf investing strategy

Post by PFInterest » Thu Sep 13, 2018 1:02 pm

how? with money.
best was yesterday. next best is today.
it is exactly the same as VTI is an index fund...if you buy monthly.

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Earl Lemongrab
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Re: etf investing strategy

Post by Earl Lemongrab » Thu Sep 13, 2018 1:05 pm

ETFs like VTI are index funds, just with a different purchase mechanism. Most custodians don't support automatic investment into ETFs. So you'd need to put in the buy orders individually. Don't try to time the market.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

delamer
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Re: etf investing strategy

Post by delamer » Thu Sep 13, 2018 1:28 pm

How would you identify a low?

2pedals
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Re: etf investing strategy

Post by 2pedals » Thu Sep 13, 2018 1:54 pm

Read this wiki on ETFs vs Mutual funds. In summary ETF require slightly more attention. I prefer mutual funds because they do not require more attention, some prefer ETFs. You should not be concerned with actively traded ETFs like VTI if you are getting a good deal or not, the trading ask and bid spreads are very small.

Smk18
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Joined: Tue Sep 11, 2018 4:16 pm

Re: etf investing strategy

Post by Smk18 » Thu Sep 13, 2018 6:43 pm

When i bought VTI it was trading for around $136/share. Now its around $149/share.
So was curious if auto investing without considering the current market price was good. Thanks

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grabiner
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Re: etf investing strategy

Post by grabiner » Thu Sep 13, 2018 8:04 pm

Smk18 wrote:
Thu Sep 13, 2018 6:43 pm
When i bought VTI it was trading for around $136/share. Now its around $149/share.
So was curious if auto investing without considering the current market price was good. Thanks
It's still a good investment if it fits your needs. The fact that the stock market has gone up recently doesn't say much about whether it will go up or down in the future.

Auto-investing is good because it ensures that the money gets invested before you have a chance to spend it, and that you keep investing in up and down markets. If you buy over a long period of time, you can't get unlucky and buy everything at a market peak.
Wiki David Grabiner

tj
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Re: etf investing strategy

Post by tj » Thu Sep 13, 2018 10:10 pm

Earl Lemongrab wrote:
Thu Sep 13, 2018 1:05 pm
ETFs like VTI are index funds, just with a different purchase mechanism. Most custodians don't support automatic investment into ETFs. So you'd need to put in the buy orders individually. Don't try to time the market.
The robo advisors do. M1 Finance being the one that lets you pick your own allocation. They execute the trades at one specific time every day.

PFInterest
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Re: etf investing strategy

Post by PFInterest » Fri Sep 14, 2018 7:26 am

Smk18 wrote:
Thu Sep 13, 2018 6:43 pm
When i bought VTI it was trading for around $136/share. Now its around $149/share.
So was curious if auto investing without considering the current market price was good. Thanks
the price doesnt matter. ever.

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