Vanguard Mutual Funds to ETF
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Vanguard Mutual Funds to ETF
I've held mutual funds, at Vanguard, for all my investing life. I recently moved them in-kind from VG to Schwab. Given that I have VG funds, I see no advantage to ETFs. Hypothetically, that could change in the future. Is there any reason I could not transfer in-kind back to Vanguard, then convert to ETFs at some time in the future (assuming Vanguard still allows its free conversion)?
- anon_investor
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Re: Vanguard Mutual Funds to ETF
You can do that, but Schwab charges you a fee to transfer funds out (to Vanguard).skeptical1 wrote: ↑Tue Sep 21, 2021 2:27 pm I've held mutual funds, at Vanguard, for all my investing life. I recently moved them in-kind from VG to Schwab. Given that I have VG funds, I see no advantage to ETFs. Hypothetically, that could change in the future. Is there any reason I could not transfer in-kind back to Vanguard, then convert to ETFs at some time in the future (assuming Vanguard still allows its free conversion)?
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Re: Vanguard Mutual Funds to ETF
I assume Schwab might waive or refund the fees if I committed to bring the ETFs back.anon_investor wrote: ↑Tue Sep 21, 2021 2:33 pm You can do that, but Schwab charges you a fee to transfer funds out (to Vanguard).
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Re: Vanguard Mutual Funds to ETF
You can always ask, but they have a fee schedule for in-kind transfers out. So any fee waiver would be YMMV.skeptical1 wrote: ↑Tue Sep 21, 2021 2:53 pmI assume Schwab might waive or refund the fees if I committed to bring the ETFs back.anon_investor wrote: ↑Tue Sep 21, 2021 2:33 pm You can do that, but Schwab charges you a fee to transfer funds out (to Vanguard).
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Re: Vanguard Mutual Funds to ETF
YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
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Re: Vanguard Mutual Funds to ETF
It's difficult to see what the Schwab fee structure might be for Vanguard funds. In their fee schedule, they state that "up to $49.95" is the fee to buy non-Schwab mutual funds but I don't know if that includes reinvestment of dividends and sales.skeptical1 wrote: ↑Tue Sep 21, 2021 2:27 pm I've held mutual funds, at Vanguard, for all my investing life. I recently moved them in-kind from VG to Schwab. Given that I have VG funds, I see no advantage to ETFs. Hypothetically, that could change in the future. Is there any reason I could not transfer in-kind back to Vanguard, then convert to ETFs at some time in the future (assuming Vanguard still allows its free conversion)?
Usually, as you are making the decision to leave Vanguard, you'd convert your mutual fund shares to its ETF equivalent because it's a tax-free conversion and you can trade easily wherever you move the ETF to (unlike the mutual fund).
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Re: Vanguard Mutual Funds to ETF
I thought Schwab just announced the fee was going up to $74.95. There was a recent thread about it:Artsdoctor wrote: ↑Tue Sep 21, 2021 3:36 pmIt's difficult to see what the Schwab fee structure might be for Vanguard funds. In their fee schedule, they state that "up to $49.95" is the fee to buy non-Schwab mutual funds but I don't know if that includes reinvestment of dividends and sales.skeptical1 wrote: ↑Tue Sep 21, 2021 2:27 pm I've held mutual funds, at Vanguard, for all my investing life. I recently moved them in-kind from VG to Schwab. Given that I have VG funds, I see no advantage to ETFs. Hypothetically, that could change in the future. Is there any reason I could not transfer in-kind back to Vanguard, then convert to ETFs at some time in the future (assuming Vanguard still allows its free conversion)?
Usually, as you are making the decision to leave Vanguard, you'd convert your mutual fund shares to its ETF equivalent because it's a tax-free conversion and you can trade easily wherever you move the ETF to (unlike the mutual fund).
viewtopic.php?f=10&t=357283
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Re: Vanguard Mutual Funds to ETF
I transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades. What's not to like about Vanguard Funds?
I may never convert to ETFs but just keeping my options in mind.
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Re: Vanguard Mutual Funds to ETF
Did they guarantee the fee waiver forever? How much did you have to transfer to swing that?skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pmI transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades.
I may never convert to ETFs but just keeping my options in mind.
- Artsdoctor
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Re: Vanguard Mutual Funds to ETF
That's interesting! Then that's a good deal. I wasn't aware that you could buy and sell Vanguard mutual funds at Schwab for free.skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pmI transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades. What's not to like about Vanguard Funds?
I may never convert to ETFs but just keeping my options in mind.
For others, I would just caution the fees that might be associated with trading Vanguard funds at other institutions.
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Re: Vanguard Mutual Funds to ETF
No guarantee, at least not in writing. About $2M.anon_investor wrote: ↑Tue Sep 21, 2021 6:14 pmDid they guarantee the fee waiver forever? How much did you have to transfer to swing that?skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pmI transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades.
I may never convert to ETFs but just keeping my options in mind.
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Re: Vanguard Mutual Funds to ETF
Thanks for sharing. My fear would be to transfer Vanguard mutual funds to Schwab and get that waiver and have them take it away later. Therefore, I would convert to ETF before transferring. I did just that for some funds I transfered to Merrill Edge as ETFs.skeptical1 wrote: ↑Tue Sep 21, 2021 6:22 pmNo guarantee, at least not in writing. About $2M.anon_investor wrote: ↑Tue Sep 21, 2021 6:14 pmDid they guarantee the fee waiver forever? How much did you have to transfer to swing that?skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pmI transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades.
I may never convert to ETFs but just keeping my options in mind.
Re: Vanguard Mutual Funds to ETF
I transferred admiral funds to Schwab. If I could do it over I would convert to ETF first, purely for the portability and ease of quick rebalancing. I have the fee waiver. You do not need the fee waiver for DRIP (no fees on that anyway)anon_investor wrote: ↑Tue Sep 21, 2021 6:26 pmThanks for sharing. My fear would be to transfer Vanguard mutual funds to Schwab and get that waiver and have them take it away later. Therefore, I would convert to ETF before transferring. I did just that for some funds I transfered to Merrill Edge as ETFs.skeptical1 wrote: ↑Tue Sep 21, 2021 6:22 pmNo guarantee, at least not in writing. About $2M.anon_investor wrote: ↑Tue Sep 21, 2021 6:14 pmDid they guarantee the fee waiver forever? How much did you have to transfer to swing that?skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pmI transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Why would you want to continue holding the Vanguard mutual funds at Schwab? I presume you're no longer going to add to those funds, because of the transaction fees.
Probably would've been easier to have done the conversion to ETFs before moving to Schwab.
Is this in a taxable account or an IRA?
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades.
I may never convert to ETFs but just keeping my options in mind.
If I ever leave Schwab, I will bounce thru VG and convert to ETF. I shudder at the prospect of trying to deal with VG again.
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Re: Vanguard Mutual Funds to ETF
Wait, you’re saying Vanguard paid your transfer fee to leave Schwab? Unheard of!tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
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Re: Vanguard Mutual Funds to ETF
Rock on! Sweet deal.skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pm I transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades. What's not to like about Vanguard Funds?
I may never convert to ETFs but just keeping my options in mind.
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Re: Vanguard Mutual Funds to ETF
I'm pretty sure. I'd have to check my records to confirm. I think Schwab charged $50 transfer fee, and I'm pretty sure I was reimbursed for that (maybe Schwab did it).TropikThunder wrote: ↑Wed Sep 22, 2021 12:02 amWait, you’re saying Vanguard paid your transfer fee to leave Schwab? Unheard of!tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Re: Vanguard Mutual Funds to ETF
FYI, There's a Schwab Information thread that discusses all things Schwab, including the potential for Schwab waiving fees under certain conditions.Artsdoctor wrote: ↑Tue Sep 21, 2021 6:21 pmThat's interesting! Then that's a good deal. I wasn't aware that you could buy and sell Vanguard mutual funds at Schwab for free.skeptical1 wrote: ↑Tue Sep 21, 2021 6:13 pm ...
I transferred our IRAs a couple of years ago. I since converted them to Schwab funds. I've been very happy with Schwab's service.
I just transferred my taxable funds last month. I got a bonus for transferring and a permanent waiver to buy/sell any Vanguard funds that Schwab trades. What's not to like about Vanguard Funds?
I may never convert to ETFs but just keeping my options in mind.
For others, I would just caution the fees that might be associated with trading Vanguard funds at other institutions.
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Re: Vanguard Mutual Funds to ETF
AIUI that fee is only for new purchases. So if the OP just holds and does not add to them, this should be a non-issue (though of course they have a fee waiver for additions). There's no fee for selling IIUC. New purchases could be ETFs (if one is worried).anon_investor wrote: ↑Tue Sep 21, 2021 3:50 pm I thought Schwab just announced the fee was going up to $74.95. There was a recent thread about it:
viewtopic.php?f=10&t=357283
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
Re: Vanguard Mutual Funds to ETF
Please check!tashnewbie wrote: ↑Wed Sep 22, 2021 8:40 amI'm pretty sure. I'd have to check my records to confirm. I think Schwab charged $50 transfer fee, and I'm pretty sure I was reimbursed for that (maybe Schwab did it).TropikThunder wrote: ↑Wed Sep 22, 2021 12:02 amWait, you’re saying Vanguard paid your transfer fee to leave Schwab? Unheard of!tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
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Re: Vanguard Mutual Funds to ETF
True. Personally, I won't want a mix match of ETF/Mutual Fund share classes of the same fund in the same account, so for any Vanguard Mutual Funds that have an ETF share class, I would do the tax free conversion to ETF before transferring them out. For example for funds I transfered out from Vanguard to Merrill Edge, those are all in ETF, but the funds I kept at Vanguard are mutual funds. I am not really adding to the ETFs at Merrill Edge though (left dividend reinvestment on though) and I am just making new purchases at Vanguard. I only have money at Merrill Edge in hopes to get a certai tier of Bank of America Preferred Rewards status. I am not leaving Vanguard yet, but if I do, I will just convert everything to ETF. With partial ETF share purchases at Fidelity, that is where I would likely go.tomsense76 wrote: ↑Wed Sep 22, 2021 2:57 pmAIUI that fee is only for new purchases. So if the OP just holds and does not add to them, this should be a non-issue (though of course they have a fee waiver for additions). There's no fee for selling IIUC. New purchases could be ETFs (if one is worried).anon_investor wrote: ↑Tue Sep 21, 2021 3:50 pm I thought Schwab just announced the fee was going up to $74.95. There was a recent thread about it:
viewtopic.php?f=10&t=357283
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Re: Vanguard Mutual Funds to ETF
Agreed. Makes sense. Would do the same.anon_investor wrote: ↑Wed Sep 22, 2021 3:23 pmTrue. Personally, I won't want a mix match of ETF/Mutual Fund share classes of the same fund in the same account, so for any Vanguard Mutual Funds that have an ETF share class, I would do the tax free conversion to ETF before transferring them out. For example for funds I transfered out from Vanguard to Merrill Edge, those are all in ETF, but the funds I kept at Vanguard are mutual funds. I am not really adding to the ETFs at Merrill Edge though (left dividend reinvestment on though) and I am just making new purchases at Vanguard. I only have money at Merrill Edge in hopes to get a certai tier of Bank of America Preferred Rewards status. I am not leaving Vanguard yet, but if I do, I will just convert everything to ETF. With partial ETF share purchases at Fidelity, that is where I would likely go.tomsense76 wrote: ↑Wed Sep 22, 2021 2:57 pmAIUI that fee is only for new purchases. So if the OP just holds and does not add to them, this should be a non-issue (though of course they have a fee waiver for additions). There's no fee for selling IIUC. New purchases could be ETFs (if one is worried).anon_investor wrote: ↑Tue Sep 21, 2021 3:50 pm I thought Schwab just announced the fee was going up to $74.95. There was a recent thread about it:
viewtopic.php?f=10&t=357283
Also have no plans to leave Vanguard atm. Though have other brokerage accounts that I could consolidate into if I felt the need.
Fractional shares at Fidelity is nice. Think also Schwab and IBKR have a good reputation for supporting ex-pats, which has interested me since I like to travel a fair bit.
The only place where ETF conversion gets tricky is Vanguard's active funds, which don't have ETF versions. Many of the muni funds fall into this category. Getting a waiver from Schwab sounds appealing in that case.
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
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Re: Vanguard Mutual Funds to ETF
Ah yes, the active funds. I only have the index funds with the ETF share class right now, but future portability is a reason to not start with the actively managed funds in taxable.tomsense76 wrote: ↑Wed Sep 22, 2021 5:21 pmAgreed. Makes sense. Would do the same.anon_investor wrote: ↑Wed Sep 22, 2021 3:23 pmTrue. Personally, I won't want a mix match of ETF/Mutual Fund share classes of the same fund in the same account, so for any Vanguard Mutual Funds that have an ETF share class, I would do the tax free conversion to ETF before transferring them out. For example for funds I transfered out from Vanguard to Merrill Edge, those are all in ETF, but the funds I kept at Vanguard are mutual funds. I am not really adding to the ETFs at Merrill Edge though (left dividend reinvestment on though) and I am just making new purchases at Vanguard. I only have money at Merrill Edge in hopes to get a certai tier of Bank of America Preferred Rewards status. I am not leaving Vanguard yet, but if I do, I will just convert everything to ETF. With partial ETF share purchases at Fidelity, that is where I would likely go.tomsense76 wrote: ↑Wed Sep 22, 2021 2:57 pmAIUI that fee is only for new purchases. So if the OP just holds and does not add to them, this should be a non-issue (though of course they have a fee waiver for additions). There's no fee for selling IIUC. New purchases could be ETFs (if one is worried).anon_investor wrote: ↑Tue Sep 21, 2021 3:50 pm I thought Schwab just announced the fee was going up to $74.95. There was a recent thread about it:
viewtopic.php?f=10&t=357283
Also have no plans to leave Vanguard atm. Though have other brokerage accounts that I could consolidate into if I felt the need.
Fractional shares at Fidelity is nice. Think also Schwab and IBKR have a good reputation for supporting ex-pats, which has interested me since I like to travel a fair bit.
The only place where ETF conversion gets tricky is Vanguard's active funds, which don't have ETF versions. Many of the muni funds fall into this category. Getting a waiver from Schwab sounds appealing in that case.
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Re: Vanguard Mutual Funds to ETF
I can't quite make heads or tails of the statements from Schwab and Vanguard. But, it looks like Schwab reimbursed me for the $50 transfer fees.nalor511 wrote: ↑Wed Sep 22, 2021 3:07 pmPlease check!tashnewbie wrote: ↑Wed Sep 22, 2021 8:40 amI'm pretty sure. I'd have to check my records to confirm. I think Schwab charged $50 transfer fee, and I'm pretty sure I was reimbursed for that (maybe Schwab did it).TropikThunder wrote: ↑Wed Sep 22, 2021 12:02 amWait, you’re saying Vanguard paid your transfer fee to leave Schwab? Unheard of!tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Re: Vanguard Mutual Funds to ETF
Thanks for checking!tashnewbie wrote: ↑Thu Sep 23, 2021 9:20 amI can't quite make heads or tails of the statements from Schwab and Vanguard. But, it looks like Schwab reimbursed me for the $50 transfer fees.nalor511 wrote: ↑Wed Sep 22, 2021 3:07 pmPlease check!tashnewbie wrote: ↑Wed Sep 22, 2021 8:40 amI'm pretty sure. I'd have to check my records to confirm. I think Schwab charged $50 transfer fee, and I'm pretty sure I was reimbursed for that (maybe Schwab did it).TropikThunder wrote: ↑Wed Sep 22, 2021 12:02 amWait, you’re saying Vanguard paid your transfer fee to leave Schwab? Unheard of!tashnewbie wrote: ↑Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
I found it impossible to believe that VG would reimburse anything, as I've never ever heard of them doing it, and they've always answered me with a hard "no" the three times I've inquired.