Author Topic: probably a stupid question about VTSAX  (Read 3374 times)

LindseyS

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probably a stupid question about VTSAX
« on: January 09, 2016, 05:58:10 PM »
I have $13,000 that I would like to invest in an index fund.  I have seen VTSAX mentioned here and several other blogs that I read and I am just wondering if there is a benefit to opening an account with Vanguard to invest when I could just purchase shares of this through Ameritrade? Is there a difference?  I am hoping to add around $12,000 per year for the next 11 years or so until all of my children have graduated from high school and then do some extensive traveling. Like I said, I know this is probably a stupid question, but I welcome and appreciate any insight.

Heckler

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Re: probably a stupid question about VTSAX
« Reply #1 on: January 09, 2016, 06:08:22 PM »
I suspect you'd be buying VTI instead as an ETF.  Whatever trading fees you incur would be the difference.

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

MDM

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Re: probably a stupid question about VTSAX
« Reply #2 on: January 09, 2016, 06:25:38 PM »

seattlecyclone

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Re: probably a stupid question about VTSAX
« Reply #3 on: January 10, 2016, 05:23:55 PM »
If you open an account with Vanguard, there are no fees to buy or sell shares of VTSAX or VTI. The same may not be true with Ameritrade. Besides the transaction fees, there's really no difference whether you hold the fund through Vanguard directly or otherwise.

JR

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Re: probably a stupid question about VTSAX
« Reply #4 on: January 11, 2016, 10:04:11 AM »
I have $13,000 that I would like to invest in an index fund.  I have seen VTSAX mentioned here and several other blogs that I read and I am just wondering if there is a benefit to opening an account with Vanguard to invest when I could just purchase shares of this through Ameritrade? Is there a difference?  I am hoping to add around $12,000 per year for the next 11 years or so until all of my children have graduated from high school and then do some extensive traveling. Like I said, I know this is probably a stupid question, but I welcome and appreciate any insight.

You can buy the ETF version (VTI) of VTSAX commission-free through TD Ameritrade but you have to sign up for the program first. Also keep in mind that there is a redemption fee for commission free ETFs of $30 if you sell within 30 days of purchase (also keep in mind that they use LIFO for this so you can't sell older lots to get around the fee). I would personally just open an account at Vanguard but I do use TD Ameritrade to invest my HSA funds (no choice) and for my son's UTMA brokerage (one of the few with no fee).