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Message
Vanguard to stop accepting purchases in leveraged and inverse investments
Posted on 1/8/19 at 7:32 pm
Posted on 1/8/19 at 7:32 pm
for all my fellow Vanguard users here is the email i received:
Beginning January 22, Vanguard will no longer accept purchases in leveraged or inverse mutual funds, ETFs (exchange-traded funds), or ETNs (exchange-traded notes).
We're making this change because these products and services do not align with our investors' focus on the long term. Most of these investments are designed to deliver their stated returns for only a short period (for example, 1 day or 1 month). Their extremely short-term, speculative nature is contrary to the long-term focus shared by most Vanguard investors.
If you already own these products, you don't need to do anything. You can continue to hold them, choose to sell them, and transfer them in kind from or to other institutions. But as of January 22, you won't be able to make new purchases in your Vanguard account. And any open buy orders you have will be canceled after the market closes on January 18, 2019.
Thank you.
i am only in 1 leveraged ETN right now anyway so no biggie.
Beginning January 22, Vanguard will no longer accept purchases in leveraged or inverse mutual funds, ETFs (exchange-traded funds), or ETNs (exchange-traded notes).
We're making this change because these products and services do not align with our investors' focus on the long term. Most of these investments are designed to deliver their stated returns for only a short period (for example, 1 day or 1 month). Their extremely short-term, speculative nature is contrary to the long-term focus shared by most Vanguard investors.
If you already own these products, you don't need to do anything. You can continue to hold them, choose to sell them, and transfer them in kind from or to other institutions. But as of January 22, you won't be able to make new purchases in your Vanguard account. And any open buy orders you have will be canceled after the market closes on January 18, 2019.
Thank you.
i am only in 1 leveraged ETN right now anyway so no biggie.
This post was edited on 1/8/19 at 7:33 pm
3
Posted on 1/8/19 at 8:00 pm to Fat Bastard
I have used TVIX to amazing profit this last 4 months. Methinks I’ll have to move that action to another broker. Not sure yet if TVIX is one of the new banned substances, but given 2x leverage I assume so 
Posted on 1/8/19 at 8:06 pm to Fat Bastard
I've been meaning to move my old 401K-turned-IRA from Vanguard to TD Ameritrade for a while now, and this seals it. I utilize a long-short strategy I developed for index investing, and the strategy needs inverse ETF/N's for the short part.
I'm sure Jack Bogle will miss my giant $3k account. I imagine there will be great wailing and gnashing of teeth in Vanguard's offices when I make the switch, but I have to do what's best for me.*
*No, I couldn't keep a straight face while typing that.
I'm sure Jack Bogle will miss my giant $3k account. I imagine there will be great wailing and gnashing of teeth in Vanguard's offices when I make the switch, but I have to do what's best for me.*
*No, I couldn't keep a straight face while typing that.
Posted on 1/8/19 at 8:07 pm to ynlvr
quote:
I have used TVIX to amazing profit this last 4 months. Methinks I’ll have to move that action to another broker. Not sure yet if TVIX is one of the new banned substances, but given 2x leverage I assume so
yeah you can still hold but no more purchases.
yep you will have to move it if you want more action on it. I guess if I want anymore of the same i will have to buy through my TD Ameritrade account I use for trading futures.
Posted on 1/8/19 at 8:08 pm to Omada
I get getting rid of leveraged funds. Getting rid of inverse investments seems a little ridiculous to me.
Posted on 1/8/19 at 8:12 pm to Omada
quote:
I'm sure Jack Bogle will miss my giant $3k account. I imagine there will be great wailing and gnashing of teeth in Vanguard's offices when I make the switch, but I have to do what's best for me.*
Posted on 1/8/19 at 8:21 pm to LSUtoOmaha
quote:
Getting rid of inverse investments seems a little ridiculous to me.
right I mean if we can always go long what's wrong with shorting? shorting is just as good as going long in commodities trading and used all the time. Should be able to do same in stock market, although you can Vanguard does not any part of it anymore.
This post was edited on 1/8/19 at 8:24 pm
Posted on 1/8/19 at 8:43 pm to Fat Bastard
Well frick me and my DDM ETF then
That ones been fun
That ones been fun
Posted on 1/8/19 at 9:08 pm to Fat Bastard
Yeah I'm just sensing this weird permabull mentality everywhere. Seems like it won't end well.
Posted on 1/8/19 at 9:34 pm to LSUtoOmaha
Reminds me of Feb. 2018 when the quick drawdown was blamed on XIV, the short volatility ETN that died.
Not surprised at Vanguard doing this. They don't want mom & pop getting hurt. You know the old trick: safety in exchange for security. Ronald Reagan said it best:
"The most terrifying words in the English language are: I'm from the government and I'm here to help." - Ronald Reagan ...
It's not going to affect most traders as they can just use options.
Not surprised at Vanguard doing this. They don't want mom & pop getting hurt. You know the old trick: safety in exchange for security. Ronald Reagan said it best:
"The most terrifying words in the English language are: I'm from the government and I'm here to help." - Ronald Reagan ...
It's not going to affect most traders as they can just use options.
This post was edited on 1/8/19 at 10:40 pm
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