Smiling woman walks along a tree-lined street with phone and coffee in hand.
Understanding investment types

Investing in Vanguard ETFs is now even simpler

Vanguard ETFs® (exchange-traded funds) are popular for several reasons, and they just got even better thanks to fractional share investing.
2 minute read
  •  
October 25, 2022
Understanding investment types
ETFs
Article
Page
Financial terms

Vanguard ETFs® (exchange-traded funds) are popular for several reasons: they’re low cost, have a history of strong performance and tax efficiency, and offer the flexibility of intraday pricing. And they just got even better thanks to fractional share investing.

Fractional investing allows you to trade a Vanguard ETF® for any dollar amount you choose, regardless of the ETF’s share price. And if you need to withdraw your money in the future, you can redeem a specific dollar amount or a set number of shares.*

Invest like fund minimums don’t exist. If one share of an ETF is $100 and you have $50 to invest, you can purchase 1/2 of a share. If you have just $1 to invest, you can purchase 1/100 of a share.

Fractional investing makes it possible to:

Invest by dollar amount

Think in dollars, not in shares, when you trade Vanguard ETFs. Buy a Vanguard ETF for as little as $1, regardless of the ETF’s share price. And you don’t have to leave a balance in your settlement fund unless you want to.

 

Withdraw exactly what you need

Sell a specific dollar amount from your portfolio and withdraw exactly what you need—nothing more, nothing less.

 

Rebalance by dollar amount

Rebalance your portfolio by dollar amount without having to convert shares to dollars (or vice versa). For example, you can sell $100 of your stock ETF and purchase $100 of a bond ETF.

 

Easily build a diversified portfolio

Handpick your own Vanguard ETF from our list of low-cost U.S. and international ETFs, or build a diversified portfolio by investing in just 4 total market ETFs.

Most Viewed

Ready to invest? See how to open an account
Start with this step-by-step guide to opening a personal investment account, such as a general investing brokerage account or an IRA.
Backdoor Roth IRA What it is and how to set it up
If you are a high-income earner, a Backdoor Roth IRA may be a good retirement investment option for you. Learn what it is and how to set up this type of retirement plan.
Who owns Vanguard?
Who owns Vanguard? Learn why we're proud to be the only investor-owned investment management company and how we focus on putting investor needs first.
Are bonds a good investment right now?
Learn how high-quality bonds can play a valuable role in your portfolio in a high-yield environment.
Top 6 tips: Your year-end financial checklist
Discover our new international fund

*If you buy or sell a specific dollar amount, the order type defaults to “market order” and the duration defaults to “day.”

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

For more information about Vanguard funds or Vanguard ETFs, obtain a mutual fund or an ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free) or through another broker (which may charge commissions). See the Vanguard Brokerage Services commission and fee schedules for full details. Vanguard ETF Shares are not redeemable directly with the issuing fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.