Lower Minimum on Admiral Shares
- ObliviousInvestor
- Posts: 4212
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Lower Minimum on Admiral Shares
Effective today, Vanguard is reducing the minimum on Admiral shares (on non-active funds) to $10,000 from $100,000.
https://personal.vanguard.com/us/insigh ... t-10062010
https://personal.vanguard.com/us/insigh ... t-10062010
Mike Piper |
Roth is a name, not an acronym. If you type ROTH, you're just yelling about retirement accounts.
Re: Lower Minimum on Admiral Shares
ObliviousInvestor wrote:Effective today, Vanguard is reducing the minimum on Admiral shares (on non-active funds) to $10,000 from $100,000.
https://personal.vanguard.com/us/insigh ... t-10062010
--Pete
- Opponent Process
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It was already covered in another thread, but spreading the news again doesn't hurt.
http://www.bogleheads.org/forum/viewtopic.php?t=61102
and here
http://www.bogleheads.org/forum/viewtopic.php?t=61120
http://www.bogleheads.org/forum/viewtopic.php?t=61102
and here
http://www.bogleheads.org/forum/viewtopic.php?t=61120
- Sunny Sarkar
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- Location: Flower Mound, TX
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Re: Lower Minimum on Admiral Shares
This is HUGE! Nothing tasted so great since my first bite into a pepperoni pizza.ObliviousInvestor wrote:Effective today, Vanguard is reducing the minimum on Admiral shares (on non-active funds) to $10,000 from $100,000.
https://personal.vanguard.com/us/insigh ... t-10062010
:cheers:
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle
Go here and click on log on
https://personal.vanguard.com/us/conten ... iewJSP.jspAre you eligible now?
If your investment in a fund qualifies for Admiral Shares, we'll automatically promote your shares tax-free. Or, to start taking advantage of the cost savings immediately, log on to your account.
- aainvestor
- Posts: 512
- Joined: Fri Mar 02, 2007 1:12 pm
- Location: Northern Virginia
I saw that last night and was wondering about it too, I have over 50K in a couple of funds but neither had been open for 10 years. I don't have a fund with less than 10k so I may be all admiral funds soon!!!henry wrote:Just noticed the "Convert to Admiral Shares" link on My Accounts and Activity page this morning and wondered what that was about since I'm a long ways from $100,000 in my mutual funds.
This is great news!
Wow!
Very nice! Just manually convert mine to Admiral Share. It's time to update my IPS again .
Thanks to Vanguard, my weighted ER for the whole portfolio is now down to 0.08%.
Very nice! Just manually convert mine to Admiral Share. It's time to update my IPS again .
Thanks to Vanguard, my weighted ER for the whole portfolio is now down to 0.08%.
Last edited by Tyrobi on Wed Oct 06, 2010 11:07 am, edited 4 times in total.
Three-fund portfolio |
"Simplicity is the master key to financial success." John C. Bogle
SpringMan wrote:Vanguard Total International Index currently has no admiral shares but allegedly they are coming soon. Good to know 10K can buy them.
A temporary win for slice and dicers?
0.32% VGTSX Vanguard Total International Stock Index Fund
0.16% VEUSX European Stock Index Admiral Shares ($10,000 min)
0.16% VPADX Vanguard Pacific Stock ($10,000 min)
0.27% VEMAX Emerging Markets Stock Index Admiral Shares ($10,000 min, PF .5%, RF .25%)
At approximate market weights: (0.16*.5 + 0.16*.25 + 0.27*.25) = 0.1875%, not including purchase and redemption fees for EM.
Probably not worth the effort, especially in taxable. Hopefully they unveil the Total International Index Admiral Shares soon.
The conversion is one way--from fund to ETF. To go from ETF to fund, you have to sell the ETF and then purchase the fund separately.btownguy wrote:Wow, that's great. It looks like the Admiral shares have the same ER's as the ETF's. I wonder if I should convert my ETF's over to Admiral share mutual funds now.
- Goldfinger
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- Location: Sugar Land, Texas
Well, that was easy!
Not to be greedy or anything, but I sure wish this applied to 403(b) plans. Not complaining, though. My spousal unit's IRA rollover is our biggest account, so we're happy w/this.
Definitely need to remember to change your ticket symbols, as stated by canucknyc.
--Goldfinger
Not to be greedy or anything, but I sure wish this applied to 403(b) plans. Not complaining, though. My spousal unit's IRA rollover is our biggest account, so we're happy w/this.
Definitely need to remember to change your ticket symbols, as stated by canucknyc.
--Goldfinger
"At cocktail parties lovely ladies would corner me and ask my opinion of the market, but alas, when they learned I was a bond man, they would quietly drift away." -- Sidney Homer/Salomon Bros
Now they did it?
Too little, too late.
We converted all our (newly) eligible funds to lower costs alternatives ages ago.
Sith!!!!!
We converted all our (newly) eligible funds to lower costs alternatives ages ago.
Sith!!!!!
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.
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- Posts: 91
- Joined: Thu Mar 01, 2007 10:23 am
50 for active, 10 for indexed
That's what I was advised by the rep I was just working with. I was shocked when he told me I was eligible for Admiral, since the amount wasn't 100. Yippee!!!
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- Joined: Thu Mar 01, 2007 10:23 am
You'd be out of the market for the 3 day settlement. Now.. whether to sell the VNQ ETF and buy Admiral shares.. ? I'd be out of the market for 3 days for REIT index. And new 1% redemption fee for a year but that doesn't bother me since I'm a long term investor.btownguy wrote:Wow, that's great. It looks like the Admiral shares have the same ER's as the ETF's. I wonder if I should convert my ETF's over to Admiral share mutual funds now.
Last edited by mikep on Wed Oct 06, 2010 11:30 am, edited 1 time in total.
Re: Lower Minimum on Admiral Shares
QUESTIONS:
How is the cost basis accounting handled after a conversion from one share class to another in a taxable account? Will I have to synthesize a new history of shares purchased using historic price data? Is the duration of all shares preserved after the conversion?
This doesn't apply to me, but what would happen if admiral shares weren't even available when the first investor class shares were purchased?
--Pete
How is the cost basis accounting handled after a conversion from one share class to another in a taxable account? Will I have to synthesize a new history of shares purchased using historic price data? Is the duration of all shares preserved after the conversion?
This doesn't apply to me, but what would happen if admiral shares weren't even available when the first investor class shares were purchased?
--Pete
Re: Now they did it?
Exactly!Doc wrote:Too little, too late.
We converted all our (newly) eligible funds to lower costs alternatives ages ago.
Sith!!!!!
However, the lower balance requirements will be good for both small investors and Vanguard. I think this step will also slow down the march out of mutual funds into comparable ETFs.
I only hope that Vanguard will add Adm shares to more funds. As is currently, a lot of VG funds still don't have Adm shares.
Does anyone know VG's criteria for establishing Adm shares?
- nvboglehead
- Posts: 489
- Joined: Tue Feb 20, 2007 11:44 am
Great News for Some Doing Roth Conversions This Year
I wasn't looking forward to losing Admiral class shares for some of the funds that I am converting from Traditional to Roth IRA this year. This is wonderful news, as the new shares will also be Admiral.
Vanguard, thank you for always keeping the shareholders' interests in mind!
Dale
Vanguard, thank you for always keeping the shareholders' interests in mind!
Dale
Learn from the Bogleheads! Do you want to work for your money or have your money work for you?
Re: Lower Minimum on Admiral Shares
Cost basis is trivial. If you change to Admiral, it's EXACTLY like a stock-split with a ticker symbol change. Your Quicken or MS Money will handle it trivially.petrico wrote:QUESTIONS:
How is the cost basis accounting handled after a conversion from one share class to another in a taxable account? Will I have to synthesize a new history of shares purchased using historic price data? Is the duration of all shares preserved after the conversion?
This doesn't apply to me, but what would happen if admiral shares weren't even available when the first investor class shares were purchased?
--Pete
Re: Lower Minimum on Admiral Shares
I like "t" word, but what would the poor slob do who's tracking his cost basis on a bootlegged copy of Excel 2000?livesoft wrote:Cost basis is trivial. If you change to Admiral, it's EXACTLY like a stock-split with a ticker symbol change. Your Quicken or MS Money will handle it trivially.petrico wrote:QUESTIONS:
How is the cost basis accounting handled after a conversion from one share class to another in a taxable account? Will I have to synthesize a new history of shares purchased using historic price data? Is the duration of all shares preserved after the conversion?
This doesn't apply to me, but what would happen if admiral shares weren't even available when the first investor class shares were purchased?
--Pete
--Pete
Re: Lower Minimum on Admiral Shares
Vanguard's site also says they track the cost basis on their side as well.livesoft wrote:Cost basis is trivial. If you change to Admiral, it's EXACTLY like a stock-split with a ticker symbol change. Your Quicken or MS Money will handle it trivially.petrico wrote:QUESTIONS:
How is the cost basis accounting handled after a conversion from one share class to another in a taxable account? Will I have to synthesize a new history of shares purchased using historic price data? Is the duration of all shares preserved after the conversion?
This doesn't apply to me, but what would happen if admiral shares weren't even available when the first investor class shares were purchased?
--Pete
Okay, but the number of shares is different. If using FIFO, I'll still have to figure out which shares, typically purchased monthly, are being sold, right?sscritic wrote:If 8,437 shares with a basis of $67,578 is converted to 6,538 new shares, the basis of the 6,538 shares is $67,578.
You don't need excel or quicken.
It wouldn't be difficult to create new share/share price entries for all the old purchases, but is that how it's done?
Tristrex wrote:Vanguard's site also says they track the cost basis on their side as well.
--PeteFor mutual funds, Vanguard automatically uses the average cost method. Average cost calculates the average price for shares sold, spreading gains and losses evenly across all your shares. (This method is not available for stocks, bonds, and some exchange-traded funds.)
Is there a point in lowering the Admiral price point?
Is there really a point in having two share classes - one with a $3k minimum investment, and one with a $10k minimum investment, with different expense ratios?
This would seem to imply that Vanguard has a *lot* of mutual fund accounts with between $3k and $10k -- or at least sufficiently many accounts, with a sufficiently high cost to justify having two share classes.
Or perhaps that they are planning to drop the minimum for the more expensive share class from $3k -- raising the expense ratio on the that share class -- but allowing a larger number of investors a seamless path from a lower starting point. Interesting market penetration tradeoff, if that is what they plan.
- Joppy
This would seem to imply that Vanguard has a *lot* of mutual fund accounts with between $3k and $10k -- or at least sufficiently many accounts, with a sufficiently high cost to justify having two share classes.
Or perhaps that they are planning to drop the minimum for the more expensive share class from $3k -- raising the expense ratio on the that share class -- but allowing a larger number of investors a seamless path from a lower starting point. Interesting market penetration tradeoff, if that is what they plan.
- Joppy
International and Small Cap
This is great news, but unfortunately, it doesn't help me. I've got Total International Index and Small-Cap Value Index in my Roth, rounding out some crappy 401k offerings in those areas and these two funds don't offer Admiral shares. Hopefully soon though.
Where do people hear that Admiral shares are coming soon for Total International?
Where do people hear that Admiral shares are coming soon for Total International?
-Matt
Re: International and Small Cap
Vanguard story here #3MDOmnis wrote:This is great news, but unfortunately, it doesn't help me. I've got Total International Index and Small-Cap Value Index in my Roth, rounding out some crappy 401k offerings in those areas and these two funds don't offer Admiral shares. Hopefully soon though.
Where do people hear that Admiral shares are coming soon for Total International?
Last edited by camper on Wed Oct 06, 2010 12:29 pm, edited 1 time in total.
Too bad the AP can't do math. All of the costs stated in this article are 10x. VTSAX charges 70 cents per $1000, not $7 for example..
http://www.google.com/hostednews/ap/art ... =D9IM9DTG2
http://www.google.com/hostednews/ap/art ... =D9IM9DTG2