Exchanging a fund within a Vanguard Roth IRA

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rmj1015
Posts: 2
Joined: Mon Jul 15, 2013 8:23 pm

Exchanging a fund within a Vanguard Roth IRA

Post by rmj1015 » Mon Jul 15, 2013 8:32 pm

First time poster here. I've had a Vanguard Roth IRA account for about a year and have a question regarding exchanges within the account. 100% of this account is invested in Total International Stock Index Investor Shares (VGTSX). In order to further diversify my retirement holdings I would like to exchange this fund for Vanguard's Target Retirement 2050 (VFIFX).

My question concerns Vanguard's frequent trading policy and whether this would disallow the exchange. Since the Target Retirement fund holds (among others) the same underlying fund (Total International Stock) as my existing holding would this run afoul of the 60 day trading restriction?

Any assistance that you can provide is much appreciated!

Thanks,
Robert

Jim180
Posts: 314
Joined: Wed Jun 26, 2013 9:47 pm

Re: Exchanging a fund within a Vanguard Roth IRA

Post by Jim180 » Mon Jul 15, 2013 10:24 pm

No, those are considered two different funds. The restriction would apply only if you were to try and get back into VGTSX.

rmj1015
Posts: 2
Joined: Mon Jul 15, 2013 8:23 pm

Re: Exchanging a fund within a Vanguard Roth IRA

Post by rmj1015 » Tue Jul 16, 2013 5:51 pm

Thanks for the clarification. This answered my question.

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