Conversion from Investor Shares to Admiral Shares

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Postby Faith20879 » Fri Oct 15, 2010 9:24 am

VictoriaF,

Nice summary. Thanks!

Regards,
Faith
Faith20879
 
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Re:

Postby avmax8 » Sat Feb 09, 2013 1:01 pm

livesoft wrote:
cjackson0 wrote:Is it possible to exchange Investor shares for Admiral shares when the funds are held at a discount brokerage?

I paid a transaction fee when purchasing my investor shares. Will I have to pay a fee when i sell investor shares and again when i buy admiral shares or is there some type of redemption? Again, this is for Vanguard Mutual Funds held at another company.

Please do us all a favor and call up your discount broker and ask them. Or give us their phone number and we will do your work for you. :)


I searched for an answer to this question but couldn't seem to find one. I called Vanguard first to discuss this with someone from their trading desk who confirmed that shares held at Vanguard are simply converted from standard to Admiral. However, he was doubtful that Admiral shares could be purchased at outside brokerages and felt that if possible, it would likely involve the sale of standard and then re-purchase of Admiral Class shares. I then called USAA (where I hold my accounts) and they told me that it was possible to purchase Admiral shares but that I would need to speak with a trader next week about my specific question. My suspicion is that they are going to tell me that this will involve a sale and then purchase rather than conversion.

That being said, I'm now wondering about my best course of action.
1. I can keep the accounts at USAA (makes my life simpler by consolidating our accounts) and to get the admiral shares will likely have to sell and repurchase shares as described above. One potential risk of this strategy (not to mention the cost) is the prohibition on "flipping" that I'm concerned might affect these trades as they are the same fund but a different class of shares (with a different ticker symbol).
2. My other option seem to be to transfer the accounts to Vanguard as they are now and then convert once they arrive there. I should mention that all the funds I'm talking about are in Roth IRA accounts so I don't think there would be any tax consequences from either of these plans.

I'll speak with the USAA trading desk on Monday but in the meantime, does anyone have any thoughts or some more info regarding this issue?
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