Not looking for investing advice, just trying to understand how to navigate Schwab website to invest properly.
I am using some small increments of my Roth IRA to invest in some ETFs for learning purposes. Last week I bought some shares in a few gold-related ETFs and had clicked the setting "reinvest dividends" because I had assumed it was like the funds in my TDF account and that nothing bad could come from clicking it.
The totals (cost basis) were $1000, $500, and $500.
Fast forward to today, I was checking my account and noticed some of my cash reserves were automatically used to buy more shares in the ETFS I bought last week.
The totals (cost basis) are now $1600, $800, $825.
So Schwab had apparently auto-pulled $600, $300, and $325 from my cash and bought more ETF with it.
Is this because I clicked on "reinvest dividends" or is there something else I'm missing? It's just such a large and arbitrary number that it doesn't make sense to me how it could be related to selecting that option.