Author Topic: Platform fro VTSAX or VTSMX for Non-US Citizen  (Read 2258 times)

Rob66

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Platform fro VTSAX or VTSMX for Non-US Citizen
« on: October 27, 2017, 10:12:03 AM »
Dear all Mustachians! I need your advise.

I am a non-us citizen and in desperate need to find out where and with who I can invest in VTSAX or VTSMX with. I have done alot of research on various brokers and made many calls and non seem to offer these specific funds for non-US citizens. The main reason is that I would like this to be a long term investment and therefore aim to invest the money and let it sit without actively having to trade (with a few top ups throughout the year).

I am able to make the minumum investment of both funds and so would like any suggestions.

I look forward to hearing the thoughts.

PS: I am new to the platform and am excited to hear thoughts from the community.

TomTX

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #1 on: October 27, 2017, 03:58:31 PM »
How about just buying VTI? It's actively traded rather than you needing to sign up with Vanguard.

Rob66

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #2 on: October 27, 2017, 11:39:54 PM »
Thanks for the response @TomTX.

I have considered VTI but am unsure as to how much activity I have to be involved in with this. I know with the VTSAX and VTSMX it takes the final days prices and I dont really have to do any trading myself. My objective is to invest and not touch it, say until retirement (with the hope of adding more money throughout the year).

Would you say VTI offers similar benefits to to these mutual funds? but I assume I would have to actively trade? which I dont have much knowledge about.

Look forward to hearing your thoughts.

Heckler

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #3 on: October 28, 2017, 01:55:32 AM »
https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0085

"Also available as a lower-cost Admiral™ Shares mutual fund and an ETF."

Click the ETF link and it takes you to VTI which has a 0.11 lower expense ratio, but you need to buy it through a brokerage who will enable you to buy on the NYSE.

https://personal.vanguard.com/us/funds/snapshot?FundId=0970&FundIntExt=INT

Where do you live?

TomTX

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #4 on: October 28, 2017, 08:02:03 AM »
Thanks for the response @TomTX.

I have considered VTI but am unsure as to how much activity I have to be involved in with this. I know with the VTSAX and VTSMX it takes the final days prices and I dont really have to do any trading myself. My objective is to invest and not touch it, say until retirement (with the hope of adding more money throughout the year).

Would you say VTI offers similar benefits to to these mutual funds? but I assume I would have to actively trade? which I dont have much knowledge about.

Look forward to hearing your thoughts.

You don't have to be very active at all. When you have a reasonable amount of money to invest you send it to your brokerage and buy VTI. Depending on your broker, they may reinvest dividends for you or you may need to do it manually once in awhile.

The only real differences are:

You can buy VTI through any broker with access to exchanges it trades on instead of having to buy a mutual fund (VTSAX) from Vanguard. Much easier to access it. Instead of buying the end-of-day price, you either buy at the time you place the order, or you tell the broker what price to buy it, and if it drops to that price, they buy for you. Easiest is to just buy at current prices.

Typically you can't buy partial shares of VTI, whereas you can often do that with mutual funds.

Rob66

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #5 on: October 29, 2017, 12:20:03 PM »
@heckler. Thank you for the response.

I live in Dubai. Do you recommend any brokers that offer VTI from Dubai? Or shall I just use an online broker?

Rob66

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #6 on: October 29, 2017, 12:25:46 PM »
@TomTX, thank you very much for the message.

Once I have brought at a specific price, do I have to continue to request the broker to buy or are they happy for the account to stay dormant until I invest more money into it? On the same note, what would you recommend as a good starting amount to invest ?

Is VTI investing in all of the NYSE companies or does it pick from a batch?

Would you then recommend VTI as a good alternative to VTSAX if I am thinking about long term investment?

I apologize for all the questions, it is just good to hear this from people that are in the industry, such as yourself.

Look forward to hear sing back.

Heckler

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #7 on: October 29, 2017, 01:46:24 PM »
Sorry, buy I know nothing about investing from UAE.  But I do know that VTI and VTSAX are different versions (ETF or mutual fund) of the same low cost index fund.  And if you can find a brokerage that allows you to buy ETFs on the NY Stock Exchange in USD, you can buy VTI.

TomTX

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Re: Platform fro VTSAX or VTSMX for Non-US Citizen
« Reply #8 on: October 31, 2017, 08:05:13 PM »
@TomTX, thank you very much for the message.

Once I have brought at a specific price, do I have to continue to request the broker to buy or are they happy for the account to stay dormant until I invest more money into it? On the same note, what would you recommend as a good starting amount to invest ?

Is VTI investing in all of the NYSE companies or does it pick from a batch?

Would you then recommend VTI as a good alternative to VTSAX if I am thinking about long term investment?

I apologize for all the questions, it is just good to hear this from people that are in the industry, such as yourself.

Look forward to hear sing back.

I don't know about brokers in Dubai, but I have often left accounts dormant for years without a manual buy or sale (dividends were being automatically reinvested.)

Invest money that you want to grow for the future, not something you intend to spend in the next few years. The amount is something you need to figure out (most brokers have minimums) - I have no idea what your income is, or what your current cash reserves are.

VTI is invested in the exact same companies as VTSAX. It's just a different way of investing that you can buy through stock exchanges rather than having to open an account at Vanguard.

I am not in the industry, but I have been investing in stocks since the late 1980s. The 2000 crash cured me of wanting to try and "Beat the Market" with individual stocks.