Investing - Theory, News & General • Re: Vanguard Mutual vs ETF - coin toss - reinvdivs

...One thing I discovered is if you want to buy something (a TIPS bond in my case) and you have to liquidate something for those funds, an ETF lets you do it essentially immediately (during normal biz hours), while you have to wait a day to get the proceeds from the mutual fund. I had only a bond mutual fund, and did not want to sell any stock ones. I now have a bond ETF in addition to the mutual fund in case this comes up again. This is in an IRA.
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Schwab doesn't make you wait. I can enter a sell order for a bond or other mutual fund and immediately buy a TIPS based on the estimated proceeds. I have no margin and have done this many times in my IRA account with no cash available (also nothing in any money market funds). Since the price of the TIPS may change a bit, I would enter the sell for somewhat more than the expected cost. I can then go back and cancel that sell order and enter a new one for the exact amount, if I choose to.

I do know that Fidelity does not allow this. I have no experience with Vanguard.

That was not my recent experience. Last week I sold SWVXX, a Schwab money market fund in an IRA and those funds were not available to trade until the next day… I couldn’t believe you wouldn’t be able to buy same day with proceeds from a MMF so I chatted with Schwab support (a real person in CO if you believe the agent) and they told me that was correct. I was able to use proceeds from stock etf sale immediately.

The agent said that the fund sale had not executed, and wouldn’t until the fund share price was made after close and that you can only trade on unsettled funds from executed trades. I was like, “but it’s a MMF, are you thinking Schwab may break the buck on the money fund?”

I wonder why you are able to?

Statistics: Posted by RubyTuesday — Sun Aug 09, 2026 11:45 am