Volkswagen (VW), a Germany-based global carmaker known for its electric vehicles (EVs). Investing in VW stock lets you join its growth in the changing auto world as it competes with Tesla. This blog-post will guide you through the whole process of how to buy Volkswagen (VW) stocks and what are the potential benefits of investing in VW stocks, and how are the company’s stocks doing in the market.
Understanding Volkswagen(VW)
You can trade Volkswagen stocks under the symbols VWAGY and VOW3. VWAGY represents VW’s American Depositary Receipts traded over-the-counter in the US. VOW3 represents VW’s preferred shares on the Frankfurt Stock Exchange in Germany.
VW Share Types
VW has two main share types: ordinary and preferred. Ordinary shares (VOW) have voting rights but trade less often. Preferred shares (VOW3) don’t vote but pay higher dividends and trade more often. Porsche Automobile Holding SE owns over half of VW’s ordinary shares and about a third of total shares. Knowing the differences between these types of share matters a lot when you want to buy VW stock.
| Share Type | Ticker Symbol | Key Characteristics |
| Ordinary | VOW | Voting rights, less liquid |
| Preferred | VOW3 | No voting rights, higher dividends, more liquid |
| Porsche Holding Co | PAH3 | Major shareholder, owns >50% of ordinary shares |
Step by Step guide on how to buy VW Stocks
Now that the VW share types are clear, let’s talk in detail about how to buy Volkswagen stocks.
1. Picking the Right Broker
Choosing the right brokerage is the most important thing to consider if you want to invest in Volkswagen (VW) stocks. Here are some top things to look forward in a broker:
- Can they trade on international markets? Make sure your broker lets you access the Frankfurt Stock Exchange or over-the-counter markets where VW trades.
- Is their platform simple to use? Look for an intuitive, easy-to-navigate platforms like eToro or Interactive Brokers.
- What are their fees like? Compare commission rates and account fees to keep your costs down.
- Do they have helpful research and analysis? Pick a broker with in-depth market information and tools to inform your decisions.
- How’s their customer support? Go for a broker who provides responsive customer support via phone, email, chat, etc.
Some popular brokers for VW stocks include:
- eToro – a platform known for its user-friendly, commission-free, social trading features.
- Interactive Brokers – a platform offering access to 150+ global markets.
- Charles Schwab, Fidelity, TD Ameritrade – well-established US brokers with robust research and a range of investment options.
Compare brokers’ offerings, fees and reviews to find the best fit for your goals. Choosing a reliable broker is directly related to smooth, secure VW stock trading.
Opening and Funding Your Account
After picking your broker, the next step is getting your account open and funded. First step is to complete registration process on the brokerage platform by providing personal/financial details.
Once your account’s good to go, deposit enough money to cover any VW trades or fees. Typically brokers allow bank transfers, credit cards, PayPal.
Be sure you’ve got enough funds before placing any VW orders. Some brokers may require minimum deposits or charge extra for certain funding methods.
Getting your brokerage account open and funded means you are ready to trade in VW stocks.
Placing Your VW Stock Order
You picked your broker and funded your account – now it’s time to buy those Volkswagen shares! Just follow these simple steps:
- Log into your brokerage account online or via mobile app of your picked broker.
- Search for VW stock by its ticker symbol; on the Frankfurt Exchange it’s VOW or VOW3. On eToro, it’s DE.
- Go through the trading interface and select the button to buy shares.
- Decide if you want a market order (buying at current market price) or a limit order (in which you set a price at which you want to buy the stock).
- Choose the number of VW shares you want to buy or the total amount of money you want to invest in VW.
- Double check all the details – total cost, number of shares, order type. Make sure everything looks right!
- When you’ve reviewed your whole order and is satisfied with it, confirm and submit that order!
After you buy your share of this automotive brand, keep watching how your VW investment performs. Stay up-to-date on Volkswagen’s latest company news and broader auto market trends too. Follow these steps for a smooth investment in VW shares.
Other Ways to Invest in Volkswagen
- Consider Porsche Holding Co (POAHY) shares. They’re the big majority shareholder of VW, so buying POAHY stock lets you access VW’s performance without directly owning VW.
- Look into exchange-traded funds (ETFs) holding VW stock. Options like the iShares MSCI Germany ETF (EWG) and Xtrackers Germany Equity ETF (GRMY) include VW shares. That allows you a diverse portfolio with VW plus other German stocks.
Checking out these alternative routes can get you exposure to VW’s potential gains without buying VW directly. But be sure to research the risks and traits of each vehicle beforehand.
Once you’ve invested in VW stocks, keep a close eye on your holdings. Regularly review your portfolio and make adjustments based on your goals and risk tolerance. Consider setting up automatic or dividend reinvestment plans to gradually build your VW position over time.
Stay updated about VW’s financials, market share, electric vehicle progress—anything that could impact share prices. Check their quarterly earnings reports, partnerships, and other big news. By actively managing your VW stocks, you can make informed choices and maximize long-term returns.
The Good, The Bad of Investing in VW
| Pros | Cons |
| Strong global presence and brand recognition | Intense competition in EVs, especially from Tesla |
| Significant investments in electric vehicles (EVs) and sustainable transportation | Economic downturns can potentially hurt sales and profits |
| Makes money across multiple markets and segments | Past emissions scandals still cause reputation damage |
| Improved profitability margins due to cost-cutting measures and operational efficiencies | Risks that are associated with the fluctuating auto industry. |
Buying VW stock has potential ups and downs. On the plus side, VW is a globally recognized brand with huge potential to grow. Their big investments in electric cars show that they’re keeping up with the future. And having diverse revenue streams can help reduce the risks of investing in VW.
But some tough challenges remain. Battling automakers like Tesla in EVs could negatively affect VW’s market share and earnings. The fluctuations in the auto market also make sales and profits unpredictable. And the fallout from the emissions scandal still continues. You can use stock screeners to find stocks with better fundamentals.
How’s VW Stock Doing?
Before getting to know how to buy Volkswagen (VW) stocks, you should first get to know how the VW stocks are doing in the market.
VW’s stock performance has seen many ups and downs recently. The diesel emission scandal and increasing EV competition are some of the challenges faced by VW in recent times. But VW is pouring money into new electric models to take on Tesla. VW stocks faced a major blow in 2022. Factors reported for the downfall of VW shares were Ukraine war, increasing concerns about a sufficient supply of energy, rising material costs, constant high inflation and tighter monetary policy of the central banks.
Compared to Tesla’s stock price, VW’s stock moves less drastically. While Tesla ranged from $101 – $315 over 52 weeks, VW traded between €98 and €133. Still, VW is determined to match or even beat Tesla at EV sales by 2024-2025 with new offerings like the ID.4 and ID.7. The stock market is not a zero-sum game, so both companies can succeed.
Despite the challenges VW has faced and is facing, VW stocks have a potential to go forward, powered by VW’s auto leadership and electric shift.
Conclusion
In summary, knowing how to buy Volkswagen (VW) stocks is the most important thing to know if you want to capitalize on Volkswagen’s major role in the auto industry and electric shift. Following the steps outlined here and understanding the different stock types available allows investors to make informed choices about investing in Volkswagen shares. Considering VW’s innovation, sustainability goals, and competitive take against industry giants like Tesla, they seem to have a promising future to invest in.
FAQs
How to buy Volkswagen (VW) stocks online?
You’ll need a broker that offers international trading. Pick one, open and fund an account, provide necessary ID and financial details. Search for VW using its ticker VOW or VOW3, decide your number of shares, and place a market or limit order per your strategy.
Does Volkswagen pay dividends?
Yes, Volkswagen pays annual dividends depending on finances and plans. Check their current dividend yield and history to estimate potential dividend income from owning VW stock.
How to purchase VW stock in the US?
Americans can buy VW either via American Depositary Receipts (ADRs) on US exchanges under ticker VWAGY, or directly on over-the-counter markets using ticker VWAPY. Open a brokerage account that allows international trades, fund it, and place your order using any method of your choice.
