Author Topic: Which ETF should I go for?  (Read 1260 times)

stanleymmf

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Which ETF should I go for?
« on: July 08, 2020, 07:14:06 PM »
I have some mutual funds with vanguard VTSAX. I am thinking on buying some ETF just to take some money from the checking account and invest while keeping it liquid . Any thoughts on which ETF I should go for?

MustacheAndaHalf

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Re: Which ETF should I go for?
« Reply #1 on: July 08, 2020, 10:56:12 PM »
Money in checking that needs to be liquid sounds like your emergency fund.  Is this money you might need within months?

Boll weevil

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Re: Which ETF should I go for?
« Reply #2 on: July 09, 2020, 09:35:56 AM »
Depends on what you’re going to do with the money. If you’re going to buy another stock or ETF, having it in ETFs will be a little faster because you can trade midday. But if you’re thinking about withdrawing it so you can buy a house or a car, I think the timelines from sale to money being swept from the brokerage to the bank takes about the same amount of time (at least with Vanguard, which only does them after the close of business for the day).

stanleymmf

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Re: Which ETF should I go for?
« Reply #3 on: July 09, 2020, 12:18:41 PM »
Money in checking that needs to be liquid sounds like your emergency fund.  Is this money you might need within months?

It is emergency fund, might use it on a few months or more down the road, depending on how the market is at the end of the year. That's why I was thinking on ETF because I can sell it when needed it, and if the ETF is down by that time I can wait to go up again

MustacheAndaHalf

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Re: Which ETF should I go for?
« Reply #4 on: July 18, 2020, 08:13:33 AM »
If you invest in the stock market, that's not an emergency fund.  It's an investment you plan to sell during emergencies, which will be a good or bad decision based on stock market performance between now and your next emergency.  It's as risky as it sounds.

A more traditional emergency fund is in cash (CDs, checking account, money market, etc).  The money won't lose value, and will be there when you need it.

 

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