Yes. And it's a nightmare. I've turned off reinvestment and manually reinvest with whole shares only.I don't appear to have that option. I'm curious, does it work for all ETFs or just Vanguard ETFs?Aren't you likely to end up with fractional shares over time due to dividend reinvestment, regardless of what units you buy them in?Just be aware that Vanguard's system for selling fractional lots is unusable. If you're going to invest like this, make sure you always get at least one ETF share.
If you're buying 0.5 of VOO every week, you're going to be miserable.
There is no way to sell a lot that has less than one share.
As long as you have at least one share, you can sell the whole number of shares in the lot. Vanguard will then liquidate the partial remainder at the end of the day.
But if you start with 0.4581 shares, due to reinvestment being less than one share, there is no way to sell that lot with specific ID.
The interface requires you to tell it how many shares you want to sell. You can't enter 0 or a non-whole number.
If you type 1, and select the 0.4581 lot, you can't submit because 0.4581 doesn't equal 1. If you select 1 from another lot and add the partial lot, you can't continue because 1.4581 does not equal 1.
The only scenario where this might work is if you had numerous partial lots that, by chance, happened to add up to a whole number.
Statistics: Posted by exodusNH — Fri Apr 26, 2024 7:15 am — Replies 6 — Views 563