How to Set Up Recurring Investments on Vanguard

Automating your investments is one of the easiest ways to stay consistent without having to remember to place trades every month. Vanguard allows investors to schedule automatic purchases of eligible ETFs and mutual funds directly from a linked bank account, making long-term investing much simpler.

In this guide, you’ll learn how to set up recurring investments on Vanguard, what investments qualify, how to edit or cancel your schedule, and a few important limitations to keep in mind before you begin.

Why Use Recurring Investments on Vanguard?

One of the biggest advantages of recurring investments on Vanguard is that they help remove emotion from investing. Instead of trying to time the market, you invest automatically on a schedule that works for you.

Many investors choose a date shortly after payday so their money is invested before they’re tempted to spend it. Over time, this disciplined approach can help build wealth through consistent investing.

Recurring Investments on Vanguard Are Only Available on the Website

Before you begin, it’s important to know that this feature is currently available only through Vanguard’s website.

Log into your Vanguard account using a desktop or laptop browser, then:

1. Hover over Transact in the top navigation.
2. Select Recurring Transactions.
3. You’ll arrive at the recurring transactions page.

Here you’ll see two available options:

• Recurring purchases of Vanguard ETFs or mutual funds
• Recurring bank transfers into your settlement fund

What You Can and Cannot Automate

Vanguard supports automatic purchases for:

• Vanguard ETFs
• Vanguard mutual funds

However, you cannot automatically purchase:

• Individual stocks
• Non-Vanguard ETFs
• Treasury bills
• CDs
• Bonds

If your preferred investment isn’t eligible, you can instead schedule recurring transfers into your settlement fund. The money will be deposited automatically, and you can manually purchase your desired investments whenever you’re ready.

Buy the Investment Before You Create the Automation

A common mistake is trying to automate purchases of an ETF you don’t already own.

For recurring investments on Vanguard, the ETF or mutual fund must already exist in your portfolio. If it doesn’t, it won’t appear in the list of available investments.

Fortunately, even purchasing a small fractional share is enough to make it eligible for future recurring purchases.

How to Set Up Recurring Investments on Vanguard

Once you’re on the recurring investment page, Vanguard guides you through three simple steps.

Select Your Investment Account

Choose the account where the recurring purchases will be made.

For most investors, this will be a standard brokerage account.

Although you’ll see the available cash in your settlement fund, recurring purchases normally pull funds directly from your linked bank account rather than using that cash balance.

Choose Your Investment Schedule

Next, decide how often your purchases should occur.

You’ll need to select:

• Investment frequency
• Start date
• End date

Most investors leave the end date set to None, allowing the investments to continue indefinitely until they’re manually changed or cancelled.

If you only want the plan to run for a certain period, you can choose a custom end date instead.

Choose the ETFs or Mutual Funds

Vanguard will display the eligible funds you currently own.

If your investment doesn’t appear, it’s usually because you haven’t purchased it yet.

One useful feature is the ability to buy multiple ETFs within a single recurring investment instead of creating separate schedules for each one.

How to Allocate Your Automatic Purchases

Vanguard offers three ways to divide your recurring investment.

Dollar Amount

Assign a fixed dollar amount to each investment.

For example:

• $50 to one ETF
• $30 to another ETF

Percentage Allocation

Choose a total monthly investment and divide it by percentage.

For example:

• Total investment: $100
• 40% to one ETF
• 60% to another ETF

Vanguard automatically calculates the dollar amount for each investment.

Equal Allocation

If you select multiple ETFs, Vanguard simply divides your investment equally among them.

For example, a $100 investment split between two ETFs would invest $50 into each.

Choose Your Funding Source

You can fund your recurring purchases using either:

• A linked bank account
• Your settlement fund

Using a linked bank account is generally the most convenient option because Vanguard automatically transfers the money and purchases your investments on the scheduled date.

Just be sure sufficient funds are available in your bank account when the transfer occurs. If the transfer fails, Vanguard may flag the transaction.

Review and Submit Your Order

Before confirming, Vanguard displays a summary that includes:

• Your investment account
• Purchase frequency
• Selected investments
• Allocation amounts
• Funding source

You’ll also notice a statement explaining that the trades are executed on a “not held” basis. This simply means Vanguard has flexibility regarding the exact execution time during the scheduled trading day rather than guaranteeing a purchase at market open.

Once everything looks correct, click Agree and Submit.

You’ll receive a confirmation message indicating that your recurring investment has been successfully scheduled.

From that point forward, Vanguard automatically transfers the money and purchases your selected investments according to your schedule.

How to Edit or Delete Recurring Investments on Vanguard

Your financial situation may change over time, and Vanguard makes it fairly easy to update your recurring investment.

To make changes:

1. Open Transact.
2. Select Recurring Transactions.
3. Locate your active recurring investment.

You’ll see two options:

• Edit
• Delete

Using Edit, you can change:

• Investment frequency
• Dollar amount
• Percentage allocation
• Selected ETFs
• Funding source
• End date

The only setting that cannot be changed is the brokerage account associated with the recurring investment.

If you select Delete, Vanguard asks you to confirm before permanently cancelling the schedule.

Can You Pause Recurring Investments?

Unlike some brokerage platforms, Vanguard doesn’t currently offer a dedicated pause button for recurring ETF purchases.

If you need to temporarily stop investing, you generally have two options:

• Delete the recurring investment and create a new one later.
• Reduce the investment amount to a smaller figure until you’re ready to increase it again.

The second option allows you to maintain the investing habit while reducing the financial commitment.

Final Thoughts

Setting up recurring investments on Vanguard can make long-term investing much easier by removing the need to manually place trades every month. Once everything is configured, Vanguard automatically transfers money from your linked bank account and purchases your selected investments according to your chosen schedule.

However, automation is only as effective as the investments you choose. Before enabling recurring investments on Vanguard, make sure you’ve selected funds that match your long-term goals, risk tolerance, and overall investment strategy.