Vanguard Fund Transaction Price

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It's always been a mystery to me what price Vanguard charges for the Mutual Fund orders. For instance:

I placed an $20k order for VTTHX (Vanguard Target Retirement 2035 Fund) from an existing account on Vanguard's website on Saturday 9/24. The money is supposed to come from a bank transfer from my personal Bank account (a credit union nothing to do with Vanguard). I'm guessing that the money will take ~2 business days to make it to Vanguard (say Tuesday 9/27). Now the question is what rate will Vanguard provide for VTTHX? Will it be:

1. Order placed rate (Close of day - Friday 9/23 since this is the last rate since the close of market)
2. Market opening rate on Monday 9/26 morning
3. Market closing rate on Monday 9/26 evening
4. Rate on the day (exact moment) when money gets transferred from my bank to Vanguard account - Tuesday 9/27
5. Rate on the day (market opening rate) when money gets transferred from my bank to Vanguard account - Tuesday 9/27 morning
6. Rate on the day (market closing rate) when money gets transferred from my bank to Vanguard account - Tuesday 9/27 evening

Will be helpful to know given the magnitude of investment and the ongoing market fluctuation. I called Vanguard to ask and the rep had no clue. Anybody knows? Thanks!
 

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#3

6.

Mutual funds only trade at end of day NAVs. There is no other trade price. You get the price of the day your money gets to vanguard. Navs come out at around 6PM.

You are correct about the end of day pricing, but Vanguard does not wait until the funds are received to make the purchases. You can see for yourself by looking at your account history for all buys. You'll see the Purchase entry along with its trade date. You'll later see a Funds Received entry where Vanguard gets the money for that trade.

Looks like vanguard has made some major changes over the last year. When I had accounts there you had to have separate mutul fund and brokerage accounts. Now it looks like you can buy vanguard funds in a true brokerage account. Makes sense as you don't have to delivery the money until T+1 in a brokerage acct. So yeah i change my answer now.

byex0039 said:   #3
  Ding! Ding! Ding! Ding! Ding!  Correct answer.
Mutual fund orders are filled at the NAV calculated after that next market close.

if you place a trade at 3:59PM Monday you get that day's NAV.  Place it after 4PM Monday, you get the NAV after Tuesday's market close.



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