Personal Investments • VUSXX as a core position

Sure would be nice, huh?

Due to my state's tax rate, I simply buy VUSXX and keep next to nothing (or, actually nothing) in my VG settlement account.
If you want to spend it, however, you will need an extra day for it to arrive in settlement so you can ACH or wire it out.

You can ACH or wire right out of VUSXX to your bank, no need to move it to the settlement fund.
This problem is only true for ETFs, not for open end funds which allow direct transfer to banks.

Yes, for sure. I do this directly to/from my bank & VUSXX also.

OP, the only difference when buying another mutual fund using the VUSXX as your core MM holding, you need to select "Exchange" and not just "Buy". The sell/buy trade happens on the same day. No bid/ask spread.

To buy an ETF, you need to sell and wait for the credit to show up in the regular settlement account after the markets close, then place your ETF order thru VG Brokerage the next day at the time of your choosing. small hassle and the market may move overnight.

Statistics: Posted by DireStraits — Thu May 02, 2024 8:07 am — Replies 19 — Views 3309