How do I invest in a vanguard trust

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crswvc
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Joined: Sat Oct 05, 2013 12:27 am

How do I invest in a vanguard trust

Post by crswvc » Mon Oct 30, 2017 8:36 am

In my taxable account I want to invest in the sp500 for 0.01% ER, which vanguard offers as VFFSX (Vanguard 500 Index Fund Institutional Select), however, the minimum is five billion and I am a bit (ok a lot) short. :(

I see that vanguard also offers the "Institutional 500 Index Trust" which invests 100% into VFFSX and as a bonus does not distribute any dividends instead adding them to the share price which is ideal for a taxable account.

So now my question, how do I buy into this trust as I don't see a ticker to punch into my brokerage account?
Last edited by crswvc on Mon Oct 30, 2017 10:08 am, edited 1 time in total.

barnaclebob
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Re: How do I invest in a vanguard trust

Post by barnaclebob » Mon Oct 30, 2017 9:34 am

My guess is that this trust is not available to retail investors and you'll have to just invest in admiral shares like the rest of us pheasants.

dbr
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Re: How do I invest in a vanguard trust

Post by dbr » Mon Oct 30, 2017 9:37 am

You find a company that has a 401k plan that uses that Vanguard fund. Some large companies might have a multi-tens-billions plan that can invest in such a thing.

Gill
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Re: How do I invest in a vanguard trust

Post by Gill » Mon Oct 30, 2017 9:57 am

barnaclebob wrote:
Mon Oct 30, 2017 9:34 am
My guess is that this trust is not available to retail investors and you'll have to just invest in admiral shares like the rest of us pheasants.
Pheasants or peasants?
Gill

barnaclebob
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Joined: Thu Aug 09, 2012 10:54 am

Re: How do I invest in a vanguard trust

Post by barnaclebob » Mon Oct 30, 2017 9:59 am

Gill wrote:
Mon Oct 30, 2017 9:57 am
barnaclebob wrote:
Mon Oct 30, 2017 9:34 am
My guess is that this trust is not available to retail investors and you'll have to just invest in admiral shares like the rest of us pheasants.
Pheasants or peasants?
Gill
Depends how pretty i feel i guess.

crswvc
Posts: 42
Joined: Sat Oct 05, 2013 12:27 am

Re: How do I invest in a vanguard trust

Post by crswvc » Mon Oct 30, 2017 10:04 am

dbr wrote:
Mon Oct 30, 2017 9:37 am
You find a company that has a 401k plan that uses that Vanguard fund. Some large companies might have a multi-tens-billions plan that can invest in such a thing.
Yes I do invest in it in my 401k :happy
Now how to invest in it in my taxable account?

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FrugalInvestor
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Re: How do I invest in a vanguard trust

Post by FrugalInvestor » Mon Oct 30, 2017 10:58 am

Gill wrote:
Mon Oct 30, 2017 9:57 am
barnaclebob wrote:
Mon Oct 30, 2017 9:34 am
My guess is that this trust is not available to retail investors and you'll have to just invest in admiral shares like the rest of us pheasants.
Pheasants or peasants?
Gill
I like pheasants. Birds of a feather flock together and here we all are at SatuMedia! :happy
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

alex_686
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Re: How do I invest in a vanguard trust

Post by alex_686 » Mon Oct 30, 2017 11:31 am

crswvc wrote:
Mon Oct 30, 2017 10:04 am
dbr wrote:
Mon Oct 30, 2017 9:37 am
You find a company that has a 401k plan that uses that Vanguard fund. Some large companies might have a multi-tens-billions plan that can invest in such a thing.
Yes I do invest in it in my 401k :happy
Now how to invest in it in my taxable account?
Not going to happen. The SEC regulates mutual funds and other things you can buy in taxable. The Department of Labor (DOL) regulates retirement plans. The DOL regulations are lower than that of the SEC. The trust is specially crafted to meet those lower regulations and thus it saves a few pennies on the back-end.

BTW, what do you care about if the fund pays dividends or not? It don't see how it makes a difference.

crswvc
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Joined: Sat Oct 05, 2013 12:27 am

Re: How do I invest in a vanguard trust

Post by crswvc » Mon Oct 30, 2017 12:26 pm

alex_686 wrote:
Mon Oct 30, 2017 11:31 am
crswvc wrote:
Mon Oct 30, 2017 10:04 am
dbr wrote:
Mon Oct 30, 2017 9:37 am
You find a company that has a 401k plan that uses that Vanguard fund. Some large companies might have a multi-tens-billions plan that can invest in such a thing.
Yes I do invest in it in my 401k :happy
Now how to invest in it in my taxable account?
Not going to happen. The SEC regulates mutual funds and other things you can buy in taxable. The Department of Labor (DOL) regulates retirement plans. The DOL regulations are lower than that of the SEC. The trust is specially crafted to meet those lower regulations and thus it saves a few pennies on the back-end.
The trust invests 100% into a mutual fund with ticker so regulated by SEC.
The sole purpose of this trust is to bypass the minimum investment and seems is not available outside of 401k :annoyed
alex_686 wrote:
Mon Oct 30, 2017 11:31 am
BTW, what do you care about if the fund pays dividends or not? It don't see how it makes a difference.
Not much, just no dividends so less tax lots

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bertilak
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Re: How do I invest in a vanguard trust

Post by bertilak » Mon Oct 30, 2017 12:33 pm

barnaclebob wrote:
Mon Oct 30, 2017 9:34 am
My guess is that this trust is not available to retail investors and you'll have to just invest in admiral shares like the rest of us pheasants.
Would that be wringed-neck pheasants?
Listen very carefully. I shall say this only once. (There! I've said it.)

dbr
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Joined: Sun Mar 04, 2007 9:50 am

Re: How do I invest in a vanguard trust

Post by dbr » Mon Oct 30, 2017 3:40 pm

crswvc wrote:
Mon Oct 30, 2017 10:04 am
dbr wrote:
Mon Oct 30, 2017 9:37 am
You find a company that has a 401k plan that uses that Vanguard fund. Some large companies might have a multi-tens-billions plan that can invest in such a thing.
Yes I do invest in it in my 401k :happy
Now how to invest in it in my taxable account?
You can't.

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