VFIAX (Vanguard S&P 500 fund) conversion to ETF

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Monster99
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VFIAX (Vanguard S&P 500 fund) conversion to ETF

Post by Monster99 »

A question for someone that has converted Vanguard MF shares to ETF shares....
I have both uncovered and covered shares in my Vanguard S&P 500 fund - if I convert to the ETF class, will the uncovered shares come in as average cost? I have SpecID selected for the account, but the uncovered shares are assigned as average cost. I have all the basis data in my records so actual lot information is not a problem but I doubt that Vanguard will let me assign basis to my lots. I started this account in the 90's and have never sold any shares....
sycamore
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Joined: Tue May 08, 2018 12:06 pm

Re: VFIAX (Vanguard S&P 500 fund) conversion to ETF

Post by sycamore »

Monster99 wrote: Fri May 14, 2021 6:40 am A question for someone that has converted Vanguard MF shares to ETF shares....
I have both uncovered and covered shares in my Vanguard S&P 500 fund - if I convert to the ETF class, will the uncovered shares come in as average cost? I have SpecID selected for the account, but the uncovered shares are assigned as average cost. I have all the basis data in my records so actual lot information is not a problem but I doubt that Vanguard will let me assign basis to my lots. I started this account in the 90's and have never sold any shares....
Here are some previous threads on this topic: https://www.google.com/search?q=vanguar ... afe=active

In particular, from viewtopic.php?t=301674. Does that help?
xenial wrote: Fri Jan 24, 2020 2:44 pm I spoke with a knowledgeable sounding Flagship representative today, and learned some things I think are worth sharing.

1. No online conversion capability is currently planned. The rep said Vanguard is concerned investors would confuse exchanges and conversions, with the potential for bad tax consequences, so they want you to call.

2. If you convert noncovered Admiral shares, the resulting ETF shares are noncovered, and Vanguard will continue to report average cost basis to you (not the IRS). No surprise here.

3. If you convert covered Admiral shares on which specific ID is used, you may continue to use specific ID on the resulting ETF shares. Each tax lot will likely contain a non-integer number of shares.
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Monster99
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Re: VFIAX (Vanguard S&P 500 fund) conversion to ETF

Post by Monster99 »

Thanks for the info.
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