I'm in the process of rolling all of my accounts over from Vanguard to Fidelity. I'm trying to convert my children's UTMA accounts from VTSAX to VTI so that I can continue purchasing VTI on Fidelity's platform.
On the Vanguard website I'm not seeing an easy way to convert these. I see the Buy/Sell/Exchange option and I thought 'Exchange' might be what I was looking for but when I select that it has me sell the VTSAX shares but doesn't show VTI as an option to exchange to.
I'm sure this is an easy process that I'm overlooking. Can someone who has done this before enlighten me here? Also, I'm assuming this won't trigger any sort of taxable event, but just wanted to be sure if there was a certain order I should follow if it would, i.e. convert from VTSAX to VTI in Vanguard before the rollover or do the conversion once it gets to Fidelity - or does it matter at all?
Converting VTSAX to VTI
Re: Converting VTSAX to VTI
To follow that up - I rolled over my Backdoor Roth's already and they were VTSAX and VTIAX in Vanguard. I did not convert them before I transferred. I'd like to do the same here - convert them to VTI and VXUS respectively. Is there an easy way to convert them in Fidelity? Or will I need to just sell those funds and then repurchase at next days end of day price for VTI and VXUS?
Re: Converting VTSAX to VTI
You need to call to convert.
Re: Converting VTSAX to VTI
It would be better (maybe cheaper) to convert to the ETF at vanguard
Can I convert my conventional Vanguard mutual fund shares to Vanguard ETF Shares?
Yes. Most funds that offer ETF Shares will allow you to convert from conventional shares of the same fund to ETF Shares. (Four of our bond ETFs—Total Bond Market, Short-Term Bond, Intermediate-Term Bond, and Long-Term Bond—don't allow for conversions.)
Conversions are allowed from both Investor and Admiral™ Shares and are tax-free if you own your mutual fund and ETF Shares through Vanguard.
Keep in mind that you can't convert ETF Shares back to conventional shares. If you decide in the future to sell your Vanguard ETF Shares and repurchase conventional shares, that transaction could be taxable.
If you have a brokerage account at Vanguard, there's no charge to convert conventional shares to ETF Shares. If you have questions, contact us.
If you own your Vanguard mutual fund shares through another broker, keep in mind that some brokers may not be able to convert fractional shares, which could result in a modest taxable gain for you. Other brokers may also charge a fee for a conversion. Contact your broker for more information.
Can I convert my conventional Vanguard mutual fund shares to Vanguard ETF Shares?
Yes. Most funds that offer ETF Shares will allow you to convert from conventional shares of the same fund to ETF Shares. (Four of our bond ETFs—Total Bond Market, Short-Term Bond, Intermediate-Term Bond, and Long-Term Bond—don't allow for conversions.)
Conversions are allowed from both Investor and Admiral™ Shares and are tax-free if you own your mutual fund and ETF Shares through Vanguard.
Keep in mind that you can't convert ETF Shares back to conventional shares. If you decide in the future to sell your Vanguard ETF Shares and repurchase conventional shares, that transaction could be taxable.
If you have a brokerage account at Vanguard, there's no charge to convert conventional shares to ETF Shares. If you have questions, contact us.
If you own your Vanguard mutual fund shares through another broker, keep in mind that some brokers may not be able to convert fractional shares, which could result in a modest taxable gain for you. Other brokers may also charge a fee for a conversion. Contact your broker for more information.
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Re: Converting VTSAX to VTI
Do it at Vanguard (call them), make sure your cost-basis was appropriately converted (and take note of it before transfer) then transfer the ETF shares to Fidelity. Once at Fidelity, compare the ETF cost-basis to make sure they transferred it correctly. As noted, fractional shares are likely to be sold when the transfer takes place so you'll get rounded down, have a small taxable event, and then have some cash in the transfer.
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Re: Converting VTSAX to VTI
I recently did this at vanguard. Called them up, had about a 10-15-minute phone conversation, asked a few questions, and the concession was complete the next day. Very very easy.
Re: Converting VTSAX to VTI
You have to call Vanguard.
Hopefully they've trained more people on the process, but when I called I had to ask to speak with someone else twice to help me. The first two people insisted that the only conversion was to sell VTSAX and buy VTI, which would be a taxable event.
Just be clear that they are doing a one time conversion of your VTSAX holdings to VTI, and that there is no selling of any stock. If they start trying to ask if you "authorize them to sell", ask to speak to a supervisor.
And before you do this, record your cost basis and make sure it converts properly. Then record your cost basis again before moving to another brokerage.
Hopefully they've trained more people on the process, but when I called I had to ask to speak with someone else twice to help me. The first two people insisted that the only conversion was to sell VTSAX and buy VTI, which would be a taxable event.
Just be clear that they are doing a one time conversion of your VTSAX holdings to VTI, and that there is no selling of any stock. If they start trying to ask if you "authorize them to sell", ask to speak to a supervisor.
And before you do this, record your cost basis and make sure it converts properly. Then record your cost basis again before moving to another brokerage.
Re: Converting VTSAX to VTI
I must be particularly daft - what do I search for on the "contact us" page to reveal the proper number to call to get someone who knows how to convert Admiral->ETF ?
Re: Converting VTSAX to VTI
I just went to:
Transact > I'd like to speak to a Vanguard representative > Enter "Convert to ETF" or anything really
It will then show a -7447 number to call. My call time was about 5 minutes total to convert.