Author Topic: buying VTSMX on TD Ameritrade  (Read 17336 times)

OceanCid

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buying VTSMX on TD Ameritrade
« on: January 28, 2014, 01:48:20 PM »
I tried purchasing VTSMX from my new TD Ameritrade account and I get 2 errors:
1. this fund is not available for this type of account
2. reinvesting the dividends or capital gains is not available for this type of account

No further info... Is it because I am not a US citizen?

thepokercab

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Re: buying VTSMX on TD Ameritrade
« Reply #1 on: January 28, 2014, 01:52:21 PM »
I buy the ETF version (VTI), commission free on TD Ameritrade: 

https://research.tdameritrade.com/grid/public/etfs/profile/profile.asp?symbol=VTI&c_name=grid_VENDOR

Same thing.. 


OceanCid

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Re: buying VTSMX on TD Ameritrade
« Reply #2 on: January 28, 2014, 01:54:04 PM »
But why don't we have access to VTSMX?

thepokercab

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Re: buying VTSMX on TD Ameritrade
« Reply #3 on: January 28, 2014, 02:19:27 PM »
I just went onto my TD Ameritrade account and it seems like if I wanted to, I am able to buy it-  they gave me the option to reinvest in this fund, etc.. 

But again, personally, I wouldn't buy VTSMX through TD Ameritrade, because they charge their owns fees for purchasing this mutual fund through them, where as the ETF version is commission free.  If you insist on buying into the mutual fund, and you have the option, doing it directly through Vanguard's website is probably the best bet. 

OceanCid

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Re: buying VTSMX on TD Ameritrade
« Reply #4 on: January 28, 2014, 02:29:12 PM »
Vanguard is not available for my country :(
and the comission-free ETF is not enable for my TD Ameritrade account. I tried registering for it - but it asked for another batch of documents to be mailed...

and I can place the order on TD ameritrade too, when I confirm it I get the error. So you may not be able to buy it either.

sheepstache

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Re: buying VTSMX on TD Ameritrade
« Reply #5 on: January 28, 2014, 02:40:29 PM »
Some countries have different regulations.  For example as an American, companies who want to sell to me have to present certain information in their prospectus, marketing material, etc.  They have to be registered with the SEC, etc.  It's possible that Vanguard mutual funds don't meet the standards set by your country's regulators.  It should be available to you because anybody can buy anything on any stock exchange, they just have to find a broker who will do it, but brokers are probably allowed to set policy based on country-wide policy. 

You might see if you have different options through a different broker platform.  Or if you're saying you can get the ETF but not commission-free, save up until you can buy a larger amount so the commission isn't as significant.

What country, by the way?

amha

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Re: buying VTSMX on TD Ameritrade
« Reply #6 on: January 28, 2014, 05:01:04 PM »
It has nothing to do with your country. Vanguard only sells their mutual funds directly---you can't buy them through third-party brokers like TD Ameritrade. (You can use a broker to buy the ETF versions, which are similar, but then you can't reinvest dividends and you have to pay trading commissions.)

Another Reader

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Re: buying VTSMX on TD Ameritrade
« Reply #7 on: January 28, 2014, 05:12:27 PM »
You most certainly can buy Vanguard mutual funds through other companies.  Fidelity offers them.  You just pay a high transaction fee at Fidelity.  If you want the Vanguard mutual funds, go through Vanguard to save transaction fees.  If you want the Vanguard ETF's, there may be companies that offer them with no commission.  I have some money in funds and ETF's at Vanguard.  I have Vanguard ETF's I bought at Schwab with waived commissions.  There are lots of ways to buy Vanguard products for free.

wtjbatman

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Re: buying VTSMX on TD Ameritrade
« Reply #8 on: January 28, 2014, 10:31:34 PM »
I have a TD Ameritrade account, yes they offer plenty of commission free funds. You have to "sign up" to access them, but once you do you can play the index game commission free. And yes that includes several Vanguard funds.

OceanCid

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Re: buying VTSMX on TD Ameritrade
« Reply #9 on: January 29, 2014, 02:34:53 AM »
I have succesfully subscribed for comission free ETFs. I still don't understand why I don't have access to buy Vanguard indexes directly from ameritrade.
I am from Romania.

I need to read more about ETFs. I don't really know what they are. Can someone point me in the right direction?
Should I just buy VTI for starters?

Thanks!

OceanCid

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Re: buying VTSMX on TD Ameritrade
« Reply #10 on: January 29, 2014, 02:53:21 AM »
This is my first investment.

I'm thinking of buying 80% VTI and 20% VXUS. What do you guys think?

soccerluvof4

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Re: buying VTSMX on TD Ameritrade
« Reply #11 on: January 29, 2014, 09:58:56 AM »
Personally I like the ETFs because you can trade them at the spot price. The index you buy at the days close. Just depends on how active you want to be and what your goals are. As far as particular funds again thats based on whole lot of other things as well. Thats really the only difference between the ETF and The index. Call Vanguard...They are great people to work with and they can give you the equivalent fund vs ETF.

wtjbatman

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Re: buying VTSMX on TD Ameritrade
« Reply #12 on: January 29, 2014, 07:36:15 PM »
This is my first investment.

I'm thinking of buying 80% VTI and 20% VXUS. What do you guys think?

ETFs (Exchange Traded Funds) are literally just funds that are traded on the exchange during the day, instead of only being bought/sold at the end of the trading day like mutual funds. They are awfully similar to mutual funds, and there are plenty of ETFs with incredibly low expense ratios that are just as good as index funds. ETFs are also nice because they don't have a minimum dollar amount to buy in like some mutual funds/index funds. When you have the money, you just buy the number of shares you want. A (minor) downside is you have to have enough money to buy whole shares. You don't just put $X into the fund and get, for example, 2.47 shares.

If you don't intend to put any money into bonds, and want to be 100% stocks/equities, then your proposed allocation looks perfect. It's simple, but there's nothing wrong with that. Both funds have low expense ratios, and you will be nicely diversified with U.S. and International stocks.

chucklesmcgee

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Re: buying VTSMX on TD Ameritrade
« Reply #13 on: January 29, 2014, 09:06:34 PM »
(You can use a broker to buy the ETF versions, which are similar, but then you can't reinvest dividends and you have to pay trading commissions.)

Actually no. If you go through Ameritrade, you can buy VTI for no commissions or fees, assuming you hold it for a short period before selling.(1-2 months?) Also, you can have dividends automatically reinvested for free by enabling DRIP (dividend reinvestment program) for VTI. Just shoot their customer service a quick email and they'll enable DRIP for you.

OceanCid

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Re: buying VTSMX on TD Ameritrade
« Reply #14 on: January 30, 2014, 08:44:54 AM »
I have bought:

50% - VTI
25% - VEU (a comission-free alternative to VXUS)
17% - BND
8% - univested at the moment. I have not allocated them yet because I am still reading about REITs. I'm thinking of putting these 8% in VNQ.

I have also dropped an email to TD Ameritrade to ask them about DRIP.
Thank you so much everyone! :)

thepokercab

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Re: buying VTSMX on TD Ameritrade
« Reply #15 on: February 01, 2014, 11:07:03 AM »
Quote
Actually no. If you go through Ameritrade, you can buy VTI for no commissions or fees, assuming you hold it for a short period before selling.(1-2 months?)

Yeah, you need to hold the ETF for at least 60 days or getting hit with a 40 dollar "short term trading fee" on each ETF you sell.  I accidentally did this once.  Ouch.   

OceanCid

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Re: buying VTSMX on TD Ameritrade
« Reply #16 on: February 03, 2014, 02:10:57 AM »
Quote
Actually no. If you go through Ameritrade, you can buy VTI for no commissions or fees, assuming you hold it for a short period before selling.(1-2 months?)

Yeah, you need to hold the ETF for at least 60 days or getting hit with a 40 dollar "short term trading fee" on each ETF you sell.  I accidentally did this once.  Ouch.
Good to know! Thanks!

crisu64

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Re: buying VTSMX on TD Ameritrade
« Reply #17 on: October 03, 2014, 06:59:36 AM »
Hi OceanCid,

I'm also from Romania and I'm looking into investing in ETFs with TDAmeritrade. What's your experience with them so far?

How did you upload the funds into Ameritrade? Do I need an account in USD?

Thanks!