Strategy for buying a big chunk of shares

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by sfdoddsy, 2nd Apr, 2019.

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  1. sfdoddsy

    sfdoddsy Well-Known Member

    Joined:
    19th Mar, 2019
    Posts:
    80
    Location:
    Sydney
    I’m almost ready to pull the trigger on investing a large lump sum.

    I can do it via Vanguard’s wholesale funds or Vanguard ETFs.

    I was thinking the funds would be easier, but the Vanguard site and signing up process is remarkably crap.

    They also appear not to have any kind of online management. Which is insane in this day and age.

    I also have a Nabtrade account which links seamlessly with my NAB banking stuff.

    Question is how one buys big chunks of an ETF.

    Buying small chunks looks easy enough.

    But what is the best strategy when the amount you wish to buy is larger than the daily average?

    Trickle out the buy order?

    Let the market decide?
     
  2. Sticky

    Sticky Active Member

    Joined:
    2nd Jul, 2015
    Posts:
    27
    Location:
    Melbourne
    Just set a limit order at the maximum you are willing to pay and let it get filled. I would be surprised if your bulk chunk is bigger than the volume available unless you offer below market.

    Today's VAS volume for example was 58,847 shares between a low of $79.000 and high of $79.660.

    If you are buying more than $5 Million in one go you may need to spread over two days...
     
  3. Fargo

    Fargo Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    648
    Location:
    Vic
    Liquidity shouldn't be a problem with ETF's . New units are created to satisfy demand. Liquidity is driven by the underlying assets, VAS has MASSIVE liquidity. Market makers create liquidity, they go and buy the underlying shares then sell them back to the ETF., or the market maker pays cash to the and the fund manager goes and buys the companies. I don't think any-one would put more than $250,000 in an ETF has there are much better funds you can have access to when you have that level of funds.