Weird cost basis after converting VTIAX to VXUS

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assyadh
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Joined: Tue Sep 18, 2018 12:44 pm

Weird cost basis after converting VTIAX to VXUS

Post by assyadh » Wed Oct 17, 2018 2:23 pm

Hi everyone,

I just converted ~20k of VTIAX to VXUS to be able to TLH easier.

Now the overall value of my new position is in line with my old VTIAX position. However the cost basis per share does not align at all with what was supposed to be VXUS price at the moment I placed the VTIAX trades.

Here is the list of my lots:

Image

As you can see the cost per share don't align at all with what was supposed to be VXUS NAV price at the moment of the trade (I am using the close price as it should be close to the NAV price, see https://finance.yahoo.com/quote/VXUS/history/).

Now I am wondering if Vanguard is able at all to do a clean conversion, after reading all the nightmares people talk about here.

In my case, they say for instance that I have traded 52.7408 shares of VXUS for 65.79 each on 09/28th which is insane as it wasn't even trading for 60.

Am I missing something here?

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Dale_G
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Joined: Tue Feb 20, 2007 5:43 pm
Location: Central Florida - on the grown up side of 81

Re: Weird cost basis after converting VTIAX to VXUS

Post by Dale_G » Wed Oct 17, 2018 4:23 pm

Vanguard has adjusted the prices of each lot of the VXUS shares to correspond to the same dollar amount of each tax lot that you paid for the VTIAX shares.

Nothing unusual here.

Dale
Volatility is my friend

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grabiner
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Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Weird cost basis after converting VTIAX to VXUS

Post by grabiner » Thu Oct 18, 2018 9:59 pm

Dale_G wrote:
Wed Oct 17, 2018 4:23 pm
Vanguard has adjusted the prices of each lot of the VXUS shares to correspond to the same dollar amount of each tax lot that you paid for the VTIAX shares.
That is the right thing to do, but it doesn't seem to be what Vanguard did. The purchase price should have been multiplied by the same value for each transaction, and that hasn't happened. VTIAX was at a lower price on 9/4/18 than on the other dates, so the 9/4 lot should have the lowest cost basis per share, not the highest. You need to send a private message to Vanguard about getting the numbers fixed, as you will need the right numbers for your taxes.

Since you currently have a loss on all of these shares, you might also get rid of the issue by selling them all for a capital loss. The total capital loss should be equal to the difference between the amount you invested and the sale proceeds.
Wiki David Grabiner

headedwest
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Joined: Wed Dec 28, 2016 1:05 pm

Re: Weird cost basis after converting VTIAX to VXUS

Post by headedwest » Fri Oct 19, 2018 12:56 pm

I have been dealing with an even more obvious and extreme cost basis error from Vanguard converting VTSAX and VTIAX mutual funds to VTI and VXUS ETFs, respectively. They lumped purchases from 2016 and 2017 into one big chunk in January 2018, so I can't select specific lots to TLH. And the overall basis is about half what it should be, so it looks like I have enormous gains. I originally contacted them about this in June (!). They did absolutely nothing after my first two phone calls about the issue. Then, for some reason, they assumed it was related to an inheritance and called me to ask questions about that (there was no inheritance). After that, they "fixed" the cost basis in my Roth, where it doesn't matter. My last phone call to them was Monday, when they told me it would be fixed for my taxable account in 10-12 days.

TIAX
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Joined: Sat Jan 11, 2014 12:19 pm

Re: Weird cost basis after converting VTIAX to VXUS

Post by TIAX » Fri Oct 19, 2018 1:18 pm

Amazing how Vanguard continues to have issues correctly tracking cost basis.

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