Mutual Fund cost basis

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erictiger
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Joined: Fri Apr 07, 2017 7:02 pm

Mutual Fund cost basis

Post by erictiger » Tue Nov 13, 2018 8:24 pm

I use average cost as cost basis at Vanguard. Recently I transferred couple thousand of VTSAX to Merrill Edge. I just noticed that the cost unit at ME is so much lower comparing to the remaining shares of VTSAX at Vanguard. Since I use average cost, should these two cost units be same?

Thanks!

Silk McCue
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Joined: Thu Feb 25, 2016 7:11 pm

Re: Mutual Fund cost basis

Post by Silk McCue » Tue Nov 13, 2018 8:42 pm

Any chance the shares transferred by VG carried their true basis and not the average cost?

Cheers

rkhusky
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Re: Mutual Fund cost basis

Post by rkhusky » Tue Nov 13, 2018 9:05 pm

Have you bought any shares of VTSAX at either ME or Vanguard since the transfer?

Take a look at the transfer records at ME and Vanguard to see what they say.

Topic Author
erictiger
Posts: 38
Joined: Fri Apr 07, 2017 7:02 pm

Re: Mutual Fund cost basis

Post by erictiger » Tue Nov 13, 2018 9:56 pm

I have not made any purchase. Seems like they used FIFO. Before transfer, the cost unit is $32. Now ME has $26 and Vanguard has $45. I have sent emails to both ME and Vanguard.

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oldcomputerguy
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Re: Mutual Fund cost basis

Post by oldcomputerguy » Tue Nov 13, 2018 10:14 pm

erictiger wrote:
Tue Nov 13, 2018 9:56 pm
I have not made any purchase. Seems like they used FIFO. Before transfer, the cost unit is $32. Now ME has $26 and Vanguard has $45. I have sent emails to both ME and Vanguard.
Looks to me as if the oldest shares transferred, leaving more recently purchased shares at Vanguard. How old were the shares you moved? VTSAX shows a $26 share price back in mid-late 2011, late 2010 and mid-2008. If the shares you moved were purchased in one of those time periods, then the average of what is left could very well be $45 per share.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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