I noticed when rebalancing in January that after selling some VTSAX (or was it VFWIX? or both? I sold both), Vanguard told me that I couldn't sell any more of that fund for two months. I don't remember why. This was the first time I had ever sold any equity fund. I don't really care but just thought I'd mention it in this thread.
I think you have it backwards. Some Vanguard funds when you trade out of them, you can't BUY back in for 2 months. Note: this only includes purchases and exchanges by phone or internet. Dividend and CG reinvestments are OK, and if you REALLY have to buy back in you can do it by snail mail.
I have been with Vanguard since 1978. 32 years. I have four words about Vanguard: Best. Investment. Company. Ever. (and not because Jack Bogle goes to my wife's church, and that is where we were married). Because over 32 years compounded, low cost and tax efficiency really do matter!
Btw I think I was one of the earliest investors in VFINX - back then you could exchange shares of any of the components of the S&P 500 for shares in Jack's "crazy index fund" - I exchanged my shares of Sears, Roebuck for the fund and saved a hefty commission - no discount brokers back then! Certainly no $8 trades.
Here is the policy:
Learn more about our frequent trading policy
All open Vanguard® funds accept exchange requests online, by telephone, or by mail. However, because excessive transactions can disrupt the management of a fund and increase the fund's costs for all shareholders, Vanguard places certain limits on exchanges and other transactions.
If you sell or exchange shares of a Vanguard fund, you will not be permitted to buy or exchange back into the same fund, in the same account, within 60 calendar days. However, this rule does not apply to:
- Vanguard money market and short-term bond funds.
- Vanguard ETF™ Shares.
- Transaction requests submitted by mail to Vanguard by shareholders who hold their accounts directly with us. Please note that transaction requests submitted by fax or wire are subject to the policy.
- Purchases of shares with fund dividends or capital gains distributions. For example, if you reinvest dividends or capital gains, these purchases will not be blocked even if shares in the fund were sold or exchanged within the previous 60 days.
- Transactions made through Vanguard’s Automatic Investment Plan, Automatic Exchange Service, Direct Deposit Service, Automatic Withdrawal Plan, Required Minimum Distribution Service, and Vanguard Small Business Online®.
- Sales of shares by Vanguard to pay fund or account fees.
- Transfers and re-registrations of shares within the same fund.
- Purchases of shares by asset transfer or direct rollover.
- Conversions of shares from one share class to another in the same fund.
- Sales of shares through checkwriting.
- Section 529 college savings plans, certain approved institutional portfolios and asset allocation programs, as well as trades made by Vanguard funds that invest in other Vanguard funds. (Please note that shareholders of Vanguard's funds of funds are subject to this policy.)
For information about the Vanguard Variable Insurance Funds’ frequent-trading policy, see the funds’ prospectus. A separate policy applies to participants in employer-sponsored retirement plans administered by Vanguard.