You're looking to invest in VTSAX through E*TRADE, a fantastic choice for broad market exposure! VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) is a highly popular mutual fund that aims to track the performance of the entire U.S. stock market. It's known for its diversification across large, mid, and small-cap companies and its incredibly low expense ratio.
While VTSAX is a Vanguard fund, you absolutely can purchase it through E*TRADE. This guide will walk you through the process step-by-step, ensuring you understand everything from account setup to placing your trade. Let's get started!
Understanding VTSAX Before You Buy
Before we dive into the "how-to," let's quickly recap why VTSAX is often a top pick for investors:
Broad Market Exposure: VTSAX invests in virtually every publicly traded company in the United States, giving you exposure to over 4,000 companies. This means you're not putting all your eggs in one basket.
Low Expense Ratio: As of July 2025, VTSAX boasts an extremely low expense ratio of 0.04%. This means that for every $10,000 you invest, you're only paying $4 in annual fees. This can significantly impact your long-term returns.
Passively Managed: It's an index fund, meaning it simply aims to mirror the performance of a specific index (the CRSP US Total Market Index). This passive approach often leads to lower costs and, historically, has outperformed many actively managed funds over the long term.
Minimum Investment: VTSAX typically requires a minimum initial investment of $3,000. Keep this in mind when planning your investment.
Now, let's get to the actionable steps!
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| How To Buy Vtsax On Etrade |
Step 1: Do You Have an E*TRADE Account? Let's Get You Set Up!
Hey there, eager investor! Before you can buy VTSAX, the very first thing you need is an E*TRADE brokerage account. If you already have one, great! You can skip ahead to Step 2. If not, let's get you signed up – it's a straightforward process.
Sub-heading: Opening Your E*TRADE Account
E*TRADE makes opening a brokerage account quite simple. Here's what you'll typically need and how to do it:
Gather Your Information: Have the following handy to make the process smooth:
Social Security Number (SSN) or Taxpayer Identification Number (TIN)
Driver's License or other government-issued ID
Employer's name and address (if applicable)
Bank account and routing numbers (to fund your new E*TRADE account)
Visit the E*TRADE Website: Navigate to the official E*TRADE website (us.etrade.com).
Click "Open an Account": You'll usually find this prominently displayed on their homepage.
Choose "Brokerage Account": E*TRADE offers various account types (retirement, managed portfolios, etc.). For buying VTSAX, a standard "Brokerage Account" is what you're looking for.
Complete the Online Application: Follow the prompts to fill out your personal details, financial information, and investment goals. This usually takes around 10-15 minutes.
Review and Agree to Terms: Carefully read and agree to all disclosures and agreements.
Fund Your Account: Once your account is opened (which often happens instantly for online applications), you'll need to fund it. E*TRADE offers several ways:
Electronic Funds Transfer (EFT): This is usually the easiest and fastest way to link your bank account and transfer funds.
Wire Transfer: For larger amounts, a wire transfer might be an option.
Check Deposit: You can mail in a check.
Account Transfer (ACATS): If you're transferring an existing brokerage account from another institution, you can initiate an ACATS transfer.
Remember: It might take a few business days for funds to fully settle in your E*TRADE account, especially for EFTs or checks. You'll need these funds available before you can place your VTSAX order.
Tip: Reread the opening if you feel lost.
Step 2: Navigate to the Trade Section
Once your E*TRADE account is open and funded, it's time to find where to place your trade.
Log In to Your E*TRADE Account: Use your username and password to log in securely.
Locate the "Trade" Tab/Section: On the E*TRADE platform, you'll typically find a "Trade" or "Trading" tab or menu option. Click on this.
Select "Mutual Funds": Within the trading section, you'll usually see options for stocks, ETFs, options, and mutual funds. Click on "Mutual Funds."
Step 3: Search for VTSAX
Now that you're in the mutual fund trading area, you need to find VTSAX.
Enter the Ticker Symbol: In the search bar provided, type in the ticker symbol for Vanguard Total Stock Market Index Fund Admiral Shares, which is VTSAX.
Verify the Fund: Double-check that the search results show "Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)" to ensure you're selecting the correct fund. You'll also see details like its Net Asset Value (NAV) and other key information.
Step 4: Place Your Buy Order
This is where you tell E*TRADE how much VTSAX you want to buy.
Sub-heading: Understanding Mutual Fund Trading
It's crucial to understand that mutual funds like VTSAX trade differently than stocks or ETFs. While stocks and ETFs trade throughout the day at various prices, mutual funds are priced only once per day, after the market closes (typically around 4:00 PM ET). When you place an order for a mutual fund, it will be executed at the next available Net Asset Value (NAV) after the market closes.
Sub-heading: Entering Your Order Details
Tip: Train your eye to catch repeated ideas.
Select "Buy": Ensure the "Buy" option is selected for your trade.
Choose Account: If you have multiple E*TRADE accounts, select the one you wish to use for this purchase.
Enter Investment Amount: This is important for mutual funds. Instead of entering the number of shares, you'll typically enter the dollar amount you wish to invest. Remember the $3,000 minimum initial investment for VTSAX.
For example: If you want to invest the minimum, enter "3000".
Review Order Type: For mutual funds, the primary order type is a "Market Order" executed at the next available NAV. There generally aren't limit orders for mutual funds in the same way as stocks.
Reinvestment Options (Optional but Recommended): You'll often have the option to reinvest dividends and capital gains back into the fund. For long-term growth and compounding, it's highly recommended to select "Reinvest Dividends and Capital Gains."
Preview Order: Always click "Preview Order" or a similar button to review all the details before confirming. Check the fund name, ticker, amount, and account.
Confirm Order: If everything looks correct, click "Place Order" or "Confirm Trade."
Pro Tip: Mutual fund transactions typically settle 1-3 days after the trade date. The proceeds from a sale won't be available for withdrawal until after settlement.
Step 5: Confirm and Monitor Your Investment
Congratulations! You've placed your order for VTSAX.
Order Confirmation: You'll receive a confirmation that your order has been placed. Remember, it will be executed at the close of the market.
Check Your Portfolio: The next business day, you should see your VTSAX shares reflected in your E*TRADE portfolio.
Monitor Performance: Regularly log in to your E*TRADE account to monitor the performance of your VTSAX investment. While VTSAX is a long-term hold, it's good practice to keep an eye on your overall portfolio.
Fees Associated with VTSAX on E*TRADE
ETRADE offers $0 commission for no-load, no-transaction-fee mutual funds. VTSAX falls into this category, meaning you generally won't pay a commission directly to ETRADE for buying or selling it.
However, remember:
Expense Ratio: VTSAX has its own internal expense ratio (currently 0.04%) which is an ongoing fee charged by Vanguard and is already factored into the fund's performance. You don't pay this directly to E*TRADE; it's deducted from the fund's assets.
Potential E*TRADE Account Fees: While online trades are commission-free, ETRADE may have other account-related fees, such as outgoing account transfer fees ($75 for full transfers) or fees for certain mandatory or voluntary actions. Always consult ETRADE's official pricing and rates page for the most up-to-date information.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to buying VTSAX on E*TRADE, with quick answers:
How to open an E*TRADE account quickly?
QuickTip: Revisit posts more than once.
You can open an E*TRADE brokerage account online in about 10-15 minutes by providing your personal details, SSN, and bank information for funding.
How to fund my E*TRADE account to buy VTSAX?
The easiest way is via an Electronic Funds Transfer (EFT) from your linked bank account, which typically takes a few business days to settle. You can also use wire transfers or mail a check.
How to find VTSAX on the E*TRADE platform?
Log in, go to the "Trade" section, select "Mutual Funds," and then search for the ticker symbol "VTSAX."
How to know the minimum investment for VTSAX?
VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) has a minimum initial investment of $3,000.
How to buy VTSAX if I don't have the $3,000 minimum?
You could consider investing in VTI (Vanguard Total Stock Market ETF), which is the ETF equivalent of VTSAX and trades like a stock without a minimum investment (you buy by the share price). Once you accumulate $3,000, you can then switch to VTSAX if desired.
QuickTip: Revisit key lines for better recall.
How to set up dividend reinvestment for VTSAX on E*TRADE?
When placing your buy order for VTSAX, look for an option to "Reinvest Dividends and Capital Gains" and ensure it's selected. This is usually the default or a readily available choice.
How to check if my VTSAX order was successful on E*TRADE?
After placing your order, check the "Order Status" or "Activity" section of your E*TRADE account. Once the market closes and the trade is executed, the shares will appear in your portfolio the next business day.
How to sell VTSAX on E*TRADE?
Go to the "Trade" section, select "Mutual Funds," find VTSAX in your holdings, and choose "Sell." Enter the dollar amount or number of shares you wish to sell, then confirm. Remember, sales also execute at the market close.
How to understand the fees for VTSAX on E*TRADE?
E*TRADE offers $0 commission for no-load, no-transaction-fee mutual funds like VTSAX. The primary ongoing cost is the fund's low expense ratio (0.04% for VTSAX), which is deducted from the fund's assets by Vanguard.
How to learn more about VTSAX before investing?
You can review the fund's prospectus on Vanguard's website or E*TRADE's platform, which provides detailed information on its investment objectives, risks, and performance. Financial news sites like Morningstar also offer comprehensive analyses.
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