Automatic Investment Plan at Vanguard: Important Notes
• Vanguard investors can set up recurring investments for eligible Vanguard mutual funds and Vanguard ETF positions.
• Recurring purchases are available for Vanguard ETFs, while mutual funds can be used for recurring investments and recurring withdrawals. Other securities, like individual stocks, cannot be enrolled.
• Vanguard’s recurring investment service is a form of dollar-cost averaging, which can be used to grow an investment over time.
Investors at Vanguard who frequently enter purchase or sell orders for Vanguard mutual funds, or recurring purchase orders for Vanguard ETFs, can save themselves some time by turning these transactions on autopilot. Here’s how to get started:
Synopsis of Systematic Purchases at Vanguard
Vanguard permits recurring purchases of eligible Vanguard mutual funds and Vanguard ETF positions. Mutual funds can also be used for recurring withdrawals. Other securities, such as individual stocks, are generally ineligible for Vanguard’s recurring investment service.
To find a list of Vanguard mutual funds and ETFs, log into the website and click on the Products & Services tab in the top menu. In the drop-down list of choices, select the link for mutual funds or ETFs.
On the next page, you’ll see a list of available Vanguard funds. It can be sorted and filtered by all sorts of criteria. A fund generally must be held in an account before it can be enrolled in a recurring investment plan, so it’s important to buy the fund first if you don’t already own it.
Signing Up for Vanguard’s AIP
Although Vanguard doesn’t always have the best digital tools in the brokerage world, enrolling in recurring investments is pretty straightforward thanks to its web-based tools. To find this sign-up point, log into your Vanguard account and look for the automatic or recurring investment area.
On the recurring investment page, you can set up a recurring-purchase schedule. For eligible mutual funds, you may also be able to set up recurring withdrawals. Next, click on the button to add a new automatic transaction.
On the purchase side, the online form may offer several frequencies, such as:
- Every month
- Every week
- Every 2 weeks
- Twice each month
The available funding choices can depend on the investment type and account setup. For mutual funds, funding may come from an external bank account or the account’s settlement fund. For ETF recurring purchases, make sure the account has enough available cash in the settlement fund before the scheduled purchase date.
A single purchase with a single debit from the funding source may be split among two or more eligible funds. Percentages can be listed on the recurring investment form for the various funds; there may also be a choice to split the amount equally among all enrolled funds.
On the sell side, recurring withdrawals are generally available for eligible mutual funds. Available frequencies may include:
- Every month
- Every quarter
- Every six months
- Every year
Proceeds from recurring withdrawals can generally be moved into an external checking or savings account or another eligible Vanguard account.
Vanguard Comparison
Cost of Vanguard’s AIP
Vanguard does not impose any separate surcharges or fees for recurring investing. Most Vanguard funds have no transaction fees, either, although a few funds may have special purchase or redemption fees that are paid to the fund. Account service fees may also apply in some situations.
Vanguard Dollar-Cost Averaging
Because a whole-dollar amount is used to make recurring purchases, Vanguard’s recurring investment service can be used for dollar-cost averaging. This is a strategy that attempts to remove market timing from investing. Because a fixed amount is used on a recurring basis, there is no need to time the market. A whole-dollar amount is used to make recurring investments regardless of what the market is doing. Dollar-cost averaging does not guarantee a profit or protect against loss, but it can make investing more consistent and easier to maintain over time.
Vanguard Review and Rating
Updated on 6/27/2026.
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