Best way to set up recurring payments on ETFs /Index funds?
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
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.
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.
"Haters gonna hate, potatoes gonna potate."
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.
And what's rebalancing?