I've used the Fidelity Brokeragelink for 5 years now. I'm in the same situation - first my company switched my 401(k) to Fidelity, then I opened the Brokeragelink to cover my other investing needs. I also opened Roth and Rollover IRAs at Fidelity and have them all linked as one.
My wife and I are at the "Sliver" level. We can purchase individual bonds at $1 each (or $8 minimum). We purchase Spartan Index funds in our IRAs.
Sorry to tell you, but you can't convert mutual fund shares directly to ETFs at Fidelity. Here's why.
By law selling mutual fund shares is a taxable event. It works just like selling stock shares of any company. But there is an exception for switching funds between share classes within
a mutual fund. That's not taxable. It's like switching from B shares to A shares within a load mutual fund.
Vanguard chose to set up their ETFs as a new share class within
existing mutual funds. That is why they can be exchanged directly without any tax implication.
But Fidelity has no such structure. They encourage you to purchase iShare ETFs (24 of which have commission-free trading). But each iShare ETF is a different legal entity from any of the Fidelity mutual funds. So converting is always a taxable event.
I know this seems somewhat crazy, but that's the law (specifically, the Investment Company Act of 1940
, with subsequent revisions). This act is also the reason why some ETFs are not allowed to automatically reinvest dividends and capital gains: ETFs set up as "Unit Investment Trusts" under the 1940 Act
lack this reinvestment capability. But Vangaurd's ETF, set up within a mutual fund structure, can
It's clear as mud. Just like most of Congress' creations