Vanguard ETF to Fidelity ETF

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oner
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Vanguard ETF to Fidelity ETF

Post by oner » Tue Sep 11, 2018 10:06 pm

Thanks to various people on this blog, my money is now on the way to Fidelity. In my NON-RETIREMENT ACCOUNT I have Vanguard ETFs. Would it be taxable event, if I transferred them to the equivalent Fidelity ETFs?

NYC_Guy
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Re: Vanguard ETF to Fidelity ETF

Post by NYC_Guy » Tue Sep 11, 2018 10:08 pm

Gains - Yes
Losses - Might be a wash transaction

drk
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Re: Vanguard ETF to Fidelity ETF

Post by drk » Tue Sep 11, 2018 10:41 pm

I don't understand. Did you sell the Vanguard ETFs in order to transfer the money? Or are you transferring the Vanguard ETFs and planning to sell them in order to buy their Fidelity/iShares equivalents?

stlutz
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Re: Vanguard ETF to Fidelity ETF

Post by stlutz » Tue Sep 11, 2018 11:19 pm

You don't need to sell your Vanguard ETFs to transfer them to Fidelity. Just transfer them over and keep holding onto them. Then no taxes are involved.

MotoTrojan
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Re: Vanguard ETF to Fidelity ETF

Post by MotoTrojan » Wed Sep 12, 2018 12:03 am

stlutz wrote:
Tue Sep 11, 2018 11:19 pm
You don't need to sell your Vanguard ETFs to transfer them to Fidelity. Just transfer them over and keep holding onto them. Then no taxes are involved.
This. But they would still remain the same ticker; you are looking for an in-kind transfer so Fidelity holds the shares. For future purchases from Fidelity probably best to use the Fidelity ticker.

Switching ticker will be a taxable event, whether it is a gain, a loss (best-case) or a wash sale (a loss where you poorly decide to buy a substantially identical fund, and lose the tax benefit).

gostars
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Re: Vanguard ETF to Fidelity ETF

Post by gostars » Wed Sep 12, 2018 12:57 am

As far as I know, the only Vanguard ETFs that track the same index as a Fidelity or iShares ETF are the 9 S&P ETFs (VOO/IVV, VOOV/IVE, VOOG/IVW, IVOO/IJH, IVOV/IJJ, IVOG/IJK, VIOO/IJR, VIOV/IJS, VIOG/IJT), and aside from VOO the Vanguard funds aren't even that common since they prefer to promote their CRSP-indexed funds instead. This would make it relatively difficult to create a wash sale, and that's only if you believe that different funds tracking the same index are substantially identical (save that debate for one of the other threads already discussing it).

Am I the only one who didn't realize until just now that Vanguard named the ETFs IVOO, VOO, and VIOO, because they're 4, 5, and 6 in roman numerals followed by OO, and track the S&P 400, 500, and 600 indices?

oner
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Re: Vanguard ETF to Fidelity ETF

Post by oner » Wed Sep 12, 2018 11:01 am

I sold the retirement Vanguard funds and put those in a money market account to make the transfer easier; I'm referring to non-retirement Vanguard ETFs that were transferred intact to Fidelity. I know I can keep the Vanguard ETFs at Fidelity; I was simply wondering for bookkeeping simplicity if it would be possible to exchange them for their Fidelity ETFs without triggering a taxable event.

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jhfenton
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Re: Vanguard ETF to Fidelity ETF

Post by jhfenton » Wed Sep 12, 2018 11:28 am

gostars wrote:
Wed Sep 12, 2018 12:57 am
Am I the only one who didn't realize until just now that Vanguard named the ETFs IVOO, VOO, and VIOO, because they're 4, 5, and 6 in roman numerals followed by OO, and track the S&P 400, 500, and 600 indices?
I remember when I noticed that. I was highly amused. I had known the VOO ticker for a long time, but I hadn't thought about V being the Roman numeral for 5 because most of Vanguard's ETFs start with V. But at some point, I learned about the S&P 400 and S&P 600 series of funds and it clicked. (I own some VIOV in taxable.) It was probably the IVOx tickers that triggered recognition for me. The VIOx tickers would probably just have seemed like more typical Vanguard V-ticker ETFs.

ResearchMed
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Re: Vanguard ETF to Fidelity ETF

Post by ResearchMed » Wed Sep 12, 2018 1:48 pm

oner wrote:
Wed Sep 12, 2018 11:01 am
I sold the retirement Vanguard funds and put those in a money market account to make the transfer easier; I'm referring to non-retirement Vanguard ETFs that were transferred intact to Fidelity. I know I can keep the Vanguard ETFs at Fidelity; I was simply wondering for bookkeeping simplicity if it would be possible to exchange them for their Fidelity ETFs without triggering a taxable event.
There is no such thing as "transferring one fund to a different fund".

No matter what you call it, you would need to sell the first fund and purchase the second fund.
IF there is a gain in that first fund, then it would be taxable, as long- or short-term gains, depending upon when you purchased it (or perhaps in several different purchase lots).

RM
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David Jay
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Re: Vanguard ETF to Fidelity ETF

Post by David Jay » Wed Sep 12, 2018 1:51 pm

oner wrote:
Wed Sep 12, 2018 11:01 am
I was simply wondering for bookkeeping simplicity if it would be possible to exchange them for their Fidelity ETFs without triggering a taxable event.
No, it is not.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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