Navigating Vanguard's high minimum for targeted index funds

Investing
#1

Hello! I have a question about Vanguard’s minimum requirement.

I finally have a short-term emergency fund saved and working towards building a more longterm emergency fund.

At the same time, I’m looking to start investing in targeted index funds for my Brokerage and Roth IRA. I’ve been eye-balling VFFVX specifically, but see that Vanguard requires a $1,000 minimum to get started.

My questions:

  1. Is the $1,000 requirement a one-time thing? Can automated investing after that be at a lower recurring amount?

  2. If I got started on investing outside of Vanguard to avoid the high-minimum, what would be the equivalent move? From my research, it looks like Wealthfront, Betterment, and Fidelity could be good options. However, they don’t have the exact VFFVX fund.

Would love some guidance on clearing up the details. Thanks!

#2

Yes, the $1,000 minimum is the initial deposit.

Minimum transfer for Fidelity is $10 (smallest amount you can transfer at a time). Fidelity equivalent would be FDEEX or FHOAX.

#3

Hi Emerline!

Congrats on building your short term emergency fund!!

  1. As Chad said, yes it’s a one time thing. The automated investing according to this page can be in increments of $1.

  2. I wouldn’t look to buy VFFVX in a non Vanguard account because that would incur unnecessary extra expenses. You can see in this article that the Fidelity equivalent to VFFVX is FDEWX. And FDEWX has no minimum initial investment! Wealthfront and Betterment are awesome, but have slightly (but not terribly) higher expense ratios. I personally would go with Fidelity or wait to save up $1000 to go with Vanguard.

Hope that helps! :slight_smile: