Best way to set up recurring payments on ETFs /Index funds?

eBay
eBai

Go to company page eBay

eBai
Jan 7, 2021 14 Comments

I want to allocate certain percentage of my salary and buy ETFS on a monthly basis.

There are multiple ETFs. I would like to for example :

1. Spend 1k to buy ETF1.
2. Spend 500 to buy ETF2.

etc etc.

And I would also like to have the opportunity to change the configuration easily, should I feel it.

What's the best way of doing it?

I know Robinhood allows this, but people say Robinhood isn't the best way to do it.

Can I use fidelity?

I've mostly been YOLO ing on robbinhood till now.

comments

Want to comment? LOG IN or SIGN UP
TOP 14 Comments
  • Google
    pEIe22

    Go to company page Google

    pEIe22
    Why do you think Robinhood isn't the best way? People say lots of things everyday. Blind is not the best source of information. Most users here think they know better than others. I just don't understand the hate. What does Fidelity/CS/MS gives that Robinhood doesn't for your use case? Ask that.

    I hate opening my Morgan Stanley and Vanguard account, even to check on my RSUs and 401K. It looks like a NASA dashboard. Complex is not always good, but blinders are all tech folks, promos work like this anyway.

    I use Robinhood for recurring investment to buy and hold ETFs every month. I haven't had a single complaint, can check on my ETFs and single stock investments, read news in one seamless experience. Not sure what extra is needed.

    Don't trust everything you read or people say. Make your own judgement.
    Jan 9, 2021 2
    • eBay
      eBai

      Go to company page eBay

      eBai
      OP
      I'm with you.
      I personally like Robinhood. It's so simple.

      I have just heard it's not the best way.

      I'm not very knowledgeable to know better.
      Jan 10, 2021
    • Google
      pEIe22

      Go to company page Google

      pEIe22
      Go with your guts ;) There is a reason why everyone is copying Robinhoood.

      "Haters gonna hate, potatoes gonna potate."
      Jan 10, 2021
  • Amazon
    2CLdnV

    Go to company page Amazon

    2CLdnV
    A lot of brokerage firms allow this while the fully automated route is usually with funds rather than ETFs which are traded like stocks.

    Eg. With Vanguard you can set up automatic contributions to VTSAX and VTIAX for the Vanguard total US and International stock index funds, where expense ratios are 0.04% and 0.11%, compared to their ETF equivalents VTI and VXUS (slightly lower expense ratios of 0.03% and 0.09%) which you have to make specific limit/market/other orders for when you want to buy.

    Eg. You can set up auto purchases for $X of VTSAX and $Y of VTIAX every month.

    You pay slightly more for the convenience, 0.01% difference in fees is $1 per $10,000 invested.
    Jan 7, 2021 2
  • Fidelity let's you set recurring orders
    Jan 7, 2021 0
  • Google
    elfoo

    Go to company page Google

    elfoo
    I've recurring transactions set up on Vanguard to buy mutual funds. Once in a while I convert them to equivalent ETFs with no tax penalty, because expense ratio is lower.
    Jan 8, 2021 4
  • Try M1 finance. It will let you pick a bouquet of stocks/ETF and split your investment amount proportionately between them which you can change in future. You can set it up in recurring mode to your choice of interval.
    Jan 7, 2021 0